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AGREEMENT
~ETWEEN
STATE OF WASHINGTON DEPARTMENT OF CORRECTIONS
AND AMERICAN TELEPHONE AND TELEGRAPH COMPANY
FOR INSTALLATION AND OPERATION OF AN INMATE TELEPHONE SYSTEM
AT. STATE CORRECTIONAL INSTITUTIONS AND WORK RELEASE FACILITIES
This Agreement is made and entered into this {{pitt. day of March,
1992, by and between the state of Washington Department of
Corrections ("Department"), and AInerican Telephone and Telegraph
Company (II Contractor") .
.
.
WHEREAS, Department issued Request for Proposal No. CRFP2562,
dated September 4, 1991, for an Inmate Telephone System and
Recording/Monitoring at Department Correctional Institution§~ and
Work Release Facilities (the "RFP");
WHEREAS,. on November 1.2, 1991', Contractor responded to the ~FP
with a total solution, combining a proposal by contractor, an
interexchange carrier, to provide interLATA long distance ~ervicet
with proposals by three local exchange companies ( "LEcs'II ) , GTE
Northwest Incorporated ("GTE"), Telephone utilities of Washington,
Inc •. dbaPTI communications (I'PTI") and U S west Communications',
("USWC"), to' provide inmate telephone stations and 'enclosures,
recording and monitoring equipment ,and local and intraLATA
telephone service (collectively, the "Combined Proposal~' and
individually, the "AT&T Proposal, II the "GTE Proposal, the "PTI
Proposal I' and the IIUSWC Proposal");
.WHEREAS , on December 20, 1991, the Department announced its
selection of Contractor as the successful vendor on the 'basis of'
the Combined Proposal, with the understanding that Dep~rtment and
Contractor would enter irito an Agreement covering the. entire
project as set forth in the RFP and that Contractor would ent~r
into Subcontracts with GTE, ?TI and USWC to cover those portions of
the RFP for which those three LECs would be responsible;
NOW, THEREFORE, Department and' Contractor do mutually agree as
follows:
1.
Incorporation by Reference of RFP and Proposals.
Contractor hereby agrees to provide the equipment and. services
required by the RFP, on· the basis set forth in the Combined
Proposal.
The RFP and the Combined Proposal, including the AT&T
Proposal, GTE Proposal, PTI Proposal and the USWC Proposal (except
for USWC's response to Attachment B to the RFP), shall constitute
and hereby are made a part of this Agreement as t~~~,".!21lly set
forth herein. As' used herein, the term,' IIcontracto:¢trl~a~l,~~,
.
.
and refer to AT&T, its subcontractors and supp.tf~~·f1.·:"!iI.~~lSTfr'fJ,
subsidiaries, affiliates, employees and agents, Of,Zii=jlCh of thei'fi:·;·...;.;r~rl'~.1
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2.
.Scope of Agreement.
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A.
The terms and 'conditions of this Agreement apply to the
LEC Public Telephones at Department Correctional Institutions and
Work Release Facilities listed on Attachment A to the RFP, as well,
as to new and expanded facilities for which the Department requests
servic~.
. B.
This Agreement; applies to two types ofLEC Public
Telephones:
Public Telephones made available to :I;nmates, from.
which only collect calls can be made ("Inmate PUblic Telephones ll )
and other Public Telephones located on the premises of certain
facilities for use by staff and visitors but not inmates (IIStaff
Public Telephones"), from which both "1+" and "0+" telephone calls
can be made. Unless otherwise stated in this Agreement, the term
"Public Telephone" shall refer both to Inmate Public Telephones and
Staff Public Telephones.
3.
Provision
Contractor.
of
InterLATA and
International
service
by
Contractor agrees to provide "0+" interLATA and international
service to all Public Telephones located on the premises of
Department Correctional Institutions and Work Release Facilities.
The ,Department hereby selects Contractor as the 110+ 11 primary
interexchange carrier (tlpIC") ,for operator assisted (110+) interLATA
and international calls placed from all 'such LEC Public Telephones.
The Department appoints Contractor-as its Agent for purposes of
submitting the Department's selection of Contractor as its PIC for,
such LEC Public Telephones. Nothing in this' Agreement requires the
Department to route "1.+" interLATA calls to AT&T from any
telephones covered by this Agreement.
4.
Subcontractors.
The Department hereby approves Contractor's'use of GTE, PTI
and USWC as Subcontractors under this Agreement. Set forth below
is a list of the equipment and services for which each of the
Subcontractors will be ,responsible to provide to the Department, in
accordance with the specifications of 'the RFP and the GTE Proposal,
PTI Proposal and USWC Proposal:
A.
GTE. GTE shall install and maintain public telephone
sets,
all
associated
equipment,
lines r
Dictaphone
recording/monitoring equipment and call ·timingand call blocking
software at the following loqation:
.
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i.Washington State Reformatory, Monroe
GTE shall install and maintain pUblic telephone sets, .all
associated equipment r lines, call timing and blocking software at
the following loca~ions:
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ii. Twin Rivers Corrections Center
iii. Indian Ridge Corrections Cen~er, Arlington,
iv.
Special Offender
Cente~,
Monroe
GTE shall also provide local and intraLATA telephone service and
operator service to the GTE Public Telephones at the above four
locations.
B.
PTI. PTI shall install and maintain public telephone
sets,
all., associated
equipment,
lines,
Dictaphone
recording/monitoring equipment and call timing and call blocking
software at the following loc~tions:
i.
ii.
Clallam Bay Correotions Center
Washington Correction Center for Women
PTI shall install and maintain" public . telephone sets, ali
associated equipment, lines, call.timing and call blocking sof~~are
at the following locations:
.-.
iii. Olympic Corrections Center
iv.
v.
Pine Lodge Pre-Release
Coyote Ridge
PTI shall also provide local telephone service and operator service
to PTI Public Telephones at the above five locations.
C.
uswc. USWC shall install and maintain public telephone
sets,
all
associated
equipment,
lines,
.Dictaphone
recording/monitoring equipment and call timing and blocking
softwar~ at the· following locations:
i.
ii.
iii.
iv.
Washington Corrections center, Shelton
McNeil Island Penitentiary
Washington State Penit~ntiary, Walla Walla
Airway Heights
.
USWC shall install and maintain pUblic telephone sets,. all
associated equipment, lines, call timing and blocking software at
·the following locations:
.
v.
Tacoma Pre-Release
vi. Cedar Creek Corrections -Center
vii. Larch Corrections Center
USWC shall also provide local and intraLATA telephone service and
operator service to USWC Public Telephones at the above six
locations.
5.
Term.
The term of this Agreement shall be five (5) years, commencing
as of March 16, 1992 (l'Effective Daten) •. Upon at least sixty (60)
000310
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days' written notice prior to the end of the initial term or a
r.enewal term-., either party may request renewal o'f the Agreement, in
which case the Agreement may be renewed for any length· of time
agreed upon by the parties. Upon expiration of the initial term or .
. a renewal term without either notice of termination or signing of
an agreement to renew, this Agreement shall automatically continue
on a month-to-month basis.
6.
Ownership of Equipment.
All equipment installed on Department premises pursuant to
this Agreement shall be provided as a service to the Department in
accordance with the RFP. No equipment shall be sold or leased to
the Department under this Agreement. Title to all public telephone
equipment,
monitoring/recording equipment,
software,
wiring,
hardware and enclosures installed pursuant to this Agreement shall
remain in contractor, or the applicable subcontractor or supplier,
during the term of this Agreement.
1.
Commissions Payable to the Department.
A.
In return for the right to provide Inmate and PUblic'
Telephone Service under this Agreement, Contractor, GTE, PTI and
USWC shall each pay to the Department on a monthly basis the
commissions set forth' in Attachment 1 to this Agreement.
Each
carrier's monthly commission checks shall be sent to ·the
Superintendent of each covered Correctional Institution or Work
Release Program, made. payable to the Inmate Welfare Fund, unless
and until the Department shall specify a dif.ferent payee for the
carriers' commission checks.
B.
For all
be payable as of
facilities in GTE
as of the cutover
.schedule mutually
Subcontractors.
facilities in USWC territory, commissions shall
the Effective Date of this Agreement.
For all
and PTI territory, commissions shall be payable
date established pursuant to the implementation
agreed upon by the Department, Contractor and its
.
C.
The commission schedule set forth in Attachment1,shall
also apply to LEC public telephones at. any new Department
Correctional Institutions or Work Release. Facilities which are
ad~edto this Agreement at the request of the Department.
D.
If any of the Commissions set forth in Attachment 1 are
.not paid within 45 days after' the end of any billing cycle,
interest at an annual rate of 10% shall be paid commencing as of
the 46th day.. 'l'his .interest charge shall not apply to the true-up
commission payments made by Contractor and DSWC with respect to the
initial billing cycles of this Agreement.
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8.
Reports.
Contractor, GTE, PTI and USWC l?hall each provide the following
reports with respect to the traffic carried by that entity:
A.
A monthly call detail report for Inmate Public
Telephones, by institution, and addressed to the
superintendent of the institution showing the date, time,
payphone nUmber, called number and length o~each call.
B.
A monthly commission report for Inmate and Staff
Public Telephones, by institution, showing total revenues
generated by each Inmate and Staff Public Telephone for
that monthly comission cycle. Each such report shall be
sent to two locations: one copy to the institution and
one copy to the Department of corrections, Attention:
Sharon Shue, Telecommunications Manager, P.O. Box 4J;L10,
MS: 61, Olympia, WA 98504-41110.
,~.
9.
Maintenance
Contractor, its subcontractors and suppliers shall provide
maintenance for the equipment., software and services supplied under·
this Agreement pursuant to the terms and conditions of the RFP and
Proposals submitted in response to the RFP.
The appropriate LEC
(GTE, PTI or USWC) shall designate a single point of contact to
receive trouble reports for each Correctional Institution or Work
Release Program in that LEC I s territory.. The Department shall.
address trouble reports relating to any service or equipment
provided under this Agreement to these designated points of
contact, which are listed in Attachment· 2 to this Agreement.
Following the installation of equipment under this. Agreement,
.contractor, its subcontractors and· suppliers shall leave the
Department's premises in good-condition and broom clean.
10.
Responsibilities of the Department
The Department shall:
A.
Take reasonable precautions to protect the public
telephone' stations and related equipment and monitoring and
. recording equipment and software from damage, vandalism, theft or
. hazardqus conditions and promptly report any .damage,· service
failure or hazardous condition to Contractor I s points of contact as
-referred to in section 9 and listed in Attachment· 2to -this
Agreement ..
B. . SUbject to the Department's security requirements,
provide access, as needed to Contractor, its subcontractors,
suppliers and agents to service the equipment provided herein.
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c.
Keep the pUblic telephone stations clean and the station
locations free from debris or obstructions.
11.' InterLATA "0+ Service
A.
staff Public Telephones shall comply with the signage and
unblocking requirement of the Telephone Operator Consumer Services
Improvement Act of i990.
B.
If' this. Agreement is amended to' add a Correctional
Institution or Work Release progr~m located in an area where
Contractor does not track billed "0+" interLATA revenues from LEC
Public Telephones, a monthly average revenue· (MAR) mutually ~greed
upon by the parties will be used in calculating Contractor's
monthly "0+" interLATA revenues. The developed MAR will be based
upon the monthly revenues generated from a like Washington state
.institution, with a similar inmate population and a similar ratio
of inmates to public telephones.
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12.
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Monitoring/Recording
Contractor shall provide live or mechanical
operator
announcements for all personal calls made from Inmate Public
Telephones that the call 'is coming from a prison inmate and that it
will be recorded and may be monitored and/or intercepted.
The
Department shall be responsible for in~tituting procedures at each
location to ensure that attorney-client calls are not recorded or
monitored.'
,
13.
Indemnification
A.
The Contractor shall defend, protect and hold harmless
the state of Washington, the Department, or any employees thereof,
from and against all claims, suits,' or actions arising from any
. negligent or deliberate act or omission of the Co:ptractor or
Subcontractor, or· agents' of either, while performing under the
terms .of this Agreement.
The provisions of this paragraph shall
not apply to any act or omission by the Contractor for which the
Department, in the text of this Agreement, has agreed to defend and
hold the Contractor harmless .. The provisions of this section sh~ll
su~ive any termination or the expiration of this Agreement.
B.
.The Department shall derend, protect and hold harmless
Contractor , its employees, agents or subcontractors, from and
against all claims', suits, actions, loss or injury arising from any
negligent or deliberate act or omission of the Department or any
employee thereof, while performing under the terms of this
Agreement, except to the extent that the claims result from the
negligence or willful acts of Contractor's employees, agents or
subcontractors.
The Department shall defend, protect and hold
-harmless the Contractor, its employees,agents or subcontractors,
from and against all claims/.suits, actions, loss or injury arising
out of or in any way connected with Contractor's provision of call
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recording equipment and call monitoring equipment to the Department
under this Agreement. The provisions of this section shall survive
any termination or the expiration of this Agreement.
14.
Regulatory
. The local, intraLATA and interLATA service provided under this
Agreement is subject to applicable tariffs or price lists, as filed
pursuant to the requirements of the Federal communications
commission and the Washington Public Service commission.
15.
Force Majeure
Neither party shall be held liable for any delay or failure in
performance of any part of this Agreement caused by circumstances
beyond the reasonable control OI the party affected or its
subcontractors or suppliers, including, but not limited to, fire,
explosion, lightning ,pest damage, power surges or failures,
strikes or labor disputes, water, acts of God, the elements,'-war,
civil disturbances, acts of civil or" military authorities or"the
public enemy, inability to secure raw materials, transportation
facilities, fuel or energy shortages.
16.
Limitation of" Liability
Except in cases involving willful or wanton conduct,
Contractor J s liability to the Department wi th respect to·. the
provision of local, intraLATA or interLATA service shall be limited
to its obliga~ion to pay commissions as set .forth above.
Contractor's liability with respect to the provision· of public·
telephone stations and related equipment and the provision of
monitoring and recording equipment is limited to direct damages
which are proven. CONTRACTOR SHALL NOT BE LIABLE TO THE DEPARTMENT
FOR ANY INDIRECT, SPECIAL, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE
LOSS OR DAMAGE OF ANY KINDT INCLUDING tOST PROFITS (WHETHER OR NOT
CONTRACTOR HAD BEEN ADVISED OF THE POSSIBILITY OF SUCH LOSS OR
DAMAGE), BY REASON OF ANY ACT OR OMISSION IN ITS PERFORMANCE UNDER
. THIS AGREEMENT.
17.
Conflict Resolution
"~'"
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A.
Should a "dispute arise between the parties hereto, with
respect to the terms of this Agreement or the performance hereof,
the parties shall attempt to resolve the dispute informally, by
investigating and discussing the issues.
In working toward a
resolution of the dispute, the parties may seek the assistance of
upper management within the respective organ~zations of the
Department and the Contractor.
B.
In the event that informal efforts to resolve" a dispute
are unsuccessful, the parties shall, prior to filing suit, submit
their . dispute to a mutually agreed - upon third party mediation
service for non-binding mediation (for example, Judicial Mediation
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Service, 1420 Fifth Avenue, Suite 400, Seattle, WA 98101).
. ,party shall share the cost of such mediation.
18.
Each
Termination and Termination Procedure
A. In the event that a correctio~al facility)covered by this
Agreement is closed for lack'of funding, consolidation with other
facilities or as a result of other judicial or governmenta.l action,
the Department may terminate this Agreement as to that facility.
B. In the event of a failure by Contractor to perform any of
the provisions hereof with respect to anyone or more correctional
facilities covered by this Agreement, or with respect to anyone or
more of the three LEC territories covered by this Agreement (GTE,
PTI or USWC), the Department may give Contractor thirty (30) days'
written notice of intent to terminate for default, specifyinq.the
nature of the alleged failure of performance and identifyinq',the
locat.ton(s) and/or LEC territory affected. Contractor shall 'not be
deemed to be in default if Contractor cures the failure' of
performance within the thirty (30) day notice periOd, or' if the
'nature of Contractor's default is such that more than thirty (30)
days are reasonably required for its cure, then Contractor shall
not be deemed to be in default if Contractor shall commence such
cure within said thirty (30) day period and thereafter diligently
prosecute such cure to completion.
c.
Unless there is a default consisting of a fa:i,.i.ure of
performance as to the entire Agreement, '. a ·termination of this
Agreement under. the terms of this Section 18 a and b as to any
single correctional facility or as to any single LEC territory
shall not operate as a termination as to any other correctional
. facility or other LEe territory, and this Agreement shall remain in
full force and effect for all other correctional facilities and LEC
territories.
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D.
During the first three years of this' Agreement, the
Department may terminate this Agreement in whole or in part only
upon one or more of the following events:
1.
Termination for the reasons provided for in section
18 a., b~ and c. herein, or .
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2.
Any' action bY' the legislature, the Governor's
office,. the Federal Communication Commission, the
Washington utilities and Transportation Commission
or a court of competent jurisdiction which results
in or necessitates termination of this Agreement in
whole or in part.,
Any termination under paragraph 18 D(,2) above requires at
least 90 calendar days' written notice of such action be
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provided to Contractor by Department as provided in
section 19 "Notices. II
#=
of
After the first three years
this Agreement, either
party may terminate this Agreement without cause by
giving written notice to the other' party, as provided for
herein, at least 180 calendar days prior to the e'ffective
date of said termination.
19.
Notices
A.
Any notices or other communications to be given under
this Agreement shall be. provided to the following parties by
personal delivery, first class u.s. mail or facsimile:
state of Washington
Department of Corrections
P.O. Box 9699, MS: FN-61
olympia, WA 98504 .
Attention: Gary L. Banning
Administrator, Contracts
and RegUlations
Facsimile no.
(206) 586-8723
Tel. no.
(206) 753-5770
AT&T
4460 Rosewood' Drive, Room 6330
Pleasanton, CA 94588
Attention: Patricia Mait~and
Facsimile no.: (510) 224-5498
Tel. no.
(510) 224-4926
, The name, address or facsimile number for notice may be changed by
giving notice in accordance with this section.
If mailed in
accordance with this Section, notice shall be deemed given when
actually received by the individual addressee or designat~d agent
or three (3) business days after mail,ing, whichever is earlier. If
transmitted by facsimile in accordance with this Section, notice
shall be deemed given when actually received by the individual
addressee or designated agent or one (1) business day after
transmission, whichever is earlier.
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B.
Courtesy copies of any notices provided by one party to
the other under this Agreement shall be prov~ded, using any of the
.methods specified in Section 19A, to:
'
u.s. West Communications, Inc.
,14808 BE 16th, Basement
Bellevue, WA 98007 ,
,
Attention: Susan Haynes
Facsimile no.
(206) 451-6011
Tel. no.
(206) 451-532?
GTE Northwest Incorporated
2312D West Casino Road
Everett, WA 98204
Attention: Joanna Sissons
Facsimile no.: (206) 353-6558
Tel. no.
(206) .356-4175
PTI Communications
Post Office Box 90
Forks, WA98331
Attention: John Fryling
Facsimile no.: (206) 374-9636
Tel. no.:
(206) 374-2300
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20.
Rights in Data
The data covered by General Term IIRights in Data" contained in
Attachment B to the RFP does not include information relating to
interLATA, intraLATA or local calls, which shall remain the
property of the applicable carrier (AT&T, USWC, PTI or GTE), and
shall be kept confidential subject to the requirements of
Washington public recor9-s. law.
In the event of a third party
request for such data, the Department shall notify Contractor in
advance of responding to the request in sufficient time to allow
Contractor to negotiate any appropriate protective arrangements,
consistent with any applicable time limits for the Department to
respond to the third party, but in any event prior to disclosing
the data.
21..
Bond
Contractor shall post a performance bond or a performance/p~yment'
bond in the amount of $500 1000 on a form acceptable tc5-· the
Department.
Such bond shall be for the purpose of guaranteeing
satisfactory performance by Contractor of the services required
hereunder and the payment of commissions due or owing to the
Department.
22. 'Incorporation of General Terms and, Conditions
The Department of Corrections General Terms and conditions, as
set forth in Attachment B to the RFP, are incorporated herein by
reference, except as modified are amended herein, and with the
exception of the following, which are deleted as inapplicable to
this project:
A. General Term "Indemnification" on' page 5 of Appendix B is
super'seded by section 13 above ("Indemnification").
B. General Term "Disputes II on page 10 of Appendix . B is
superseded by section 17 above ('rConflict Resolution"), and section
18 ("Termination and Termination Procedure ll ) .
C. General Terms "Termination by Contractor" and "Termination
for Convenience on page 11 of Appendi~ B are superseded by section
,5 .above (IITerm") and section 18 (UTermination and Termination
Procedure U).
23.
Contract Modifications
The parties may supplement or amend this Agreement by mutual
consent, provided such supplement or amendment is in writing and
signed by authorized representatives of both parties.
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24.
Entire Agreement
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This Agreement and the documents incorporated herein by
reference, Le., the Combined Proposal, the RFP and the Department
of Corrections General Terms and Conditions (Atta9hment B),
constitute the entire understanding between the parties and
supersede
all
prior
understandings,
oral
or
written
representations,
statements"
negotiations,
proposals
and
undertakings with respect to the subject matter hereor.
In the
event that any provisions of this Agreement and the incorporated
documents are inconsistent, the order of precedence shall be as
follows: (1) this'Agreement; (2) the Combined Proposal (except for
USWC J S response to Attachment B to the RFP; (3) the RF:? and (4) the
Department of Corrections General Terms and Conditions (Attachment
B) •
.
STATE OF
DEPARTME
.~..w-~~PHONE
PANY
&,
.
TELEGRAPH
J::
By:
By:
(Signature)
Joh)\ ?ow.tll
Chase Riveland .
(Typed or Printed Name)
(Typed or Printed Name)
~Le.~
Ti
Secretary
(Title)
V, 1>.
=ZJ12.(Da~
(
3/31/92
. (Date)
.
Approved as to Form:
OFFICE OF THE ATTORNEY GENERAL
STATE OF WASHINGTON
(Typ~d
or Printed Name)
A~}~{~~ ~
A~~rll<e.J
Gevl.(?r\ \
(Title)
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COMMISSION SCHEDULE
AT&T: commission rate of 24% on billed revenues from operatorassisted intraLATA, interLATA and international calls carried by
AT&T.
1.
2. GTE: commission rate of 27% on billed revenues from operatorassisted local and intraLATAcalls carried by GTE.
3. PTI: commission rate of 27% on billed revenues from operatorassisted local calls carried by PTI.
4. USWC: the following commission rates shall apply to billed
revenues from. operator-assisted local and intraLATA calls carried
by USWC:
USWC agrees to pay the Department a commission rate of 35%. At the
end of each calendar year· cif this Agreement I USWC shall review
billed USWC revenues against the schedule shown below and increase
the compensation, if appropriate, as follows:
Adjustment Level &
New Commission Rate
Annual USWC Revenue
$2.0 Million
$3.0 Million
$4.0 Million
35%
36%
37%
The USWC commission rate will not fall below 35%. Once a level of
commission has been achieved, ·it will remain in place throughout
the remaining years of this Agreement unless the next appropriate
level is attained.
ATTACHMENT· 1
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STATE OF WASHINGTON .
DEPARTMENT OF CORRECTIONS
REQUEST FOR PROPOSAL NO. CRFP2562
INMATE TELEPHONE SYSTEM
AND
RECORDING/MONITORING
ISSUA~CE DATE: SEPTEMBER 4,1991
000320
TABLE OF CONTENTS
SECTION 1-1 GENERAL INFORMATION
A.
Definitions . . . . . . , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. i
'B.
Purpose. . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . .'. . . . . . . .. 1
C.
. Background .,......................................... 2
SECTION 1-2 SCOPE AND OBJECTIVES .. ," .. ',' . . . . . . . . . • . . . . . . . . . . . .. 2
A.
Scope. ,
B. '
Objective
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SECTION 1-3 PROJECT REQUIREMENTS
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SECTION 1-4 PERFORMANCE PERIOD . . . . .. . . . . . . . . . . . .. .. . . . . . . . . .. 4
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SECTION 1-5 GENERAL INFORMATION
, 4
, SECTION 1-6 RFP MODIFICATION
SECTIONn
" . . . . . . . . . .. 4
PROPOSAL INSTRUCTIONS ','
;
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SECTION 11-1 ISSUING OFFICE' .•....•...•..................... '. . . .. 5
SECTION 11-2 PRE-BID CONFERENCE
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SECTION 11-3 PREPARATION COSTS
5
~ . . . . . .6
SECTION 11-4 BIDDER AND PROPOSAL REQUIREMENTS,
A. "
Eligibility. '
','
B.·
Qualification Requirements .;
','
'
,
';
'. . .. 6
,
6
SECTION 11-5 PROPOSAL FORMAT AND CONTENT REQUIREMENTS . . . . . . .. 6
A.
'Proposal Format and Centent .. ,
:'
;. 6
1. Technical Proposals . . . . . . . . . . . . . . . • . . . . . . . . .. . . . . . . .. 6
2. Management Proposals
, .•....... ' 7
i
000321
3. 'Cost Proposals
'
','
_
"
7
SECTION 11-6 PROPOSAL VALIDATION PERIOD .•...................... 7
SECTION 11-7 EVALlJATION PROCEDURE . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 8
,SECTION 11-8 SCHEDULE OF ACTIVITIES AND DEADLINES
A. Schedule of Activities
'. . . . . . . .. 9
'. . . . . . . . . . . . . . . . . . . . .. 9
B: Bidder's Proposal
'.'
'. . . . . . .. 10
" . .. 11
SECTION 11-9 REJECTION OF PROPOSALS
SECTION 11-10 ADDENDUM/MODIFICATIONS ..........•............. '.-:
11
SECTION 11-11 EQUAL OPPORTUNITY ASSURANCES .... : ...,. . . • . . . . . .. 12
SECTldN 11-12 ESCAPE CLAUSE . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . .. 12
.
.
SECTION 11-13 MINIMUM ACCEPTANCE 810 PERFORMANCE LEVELS
12
SECTION 11-14 NOTICE OF AWARD OF CONTRACT ...•............ ~
13
SECTION 11-15 MISCELLANEOUS PROVISIONS
: . . . . . . . . . .. .. 13
SECTION 11-16 DEBRIEFING OF UNSUCCESSFUL VENDORS
13
SECTION 11-17 GENERAL TERMS AND CONDITIONS. . . . • . . . . . . . . . . . . . .. 15
APPENDIX A •.•...........•...... TECHNICAL SPECIFICATIONS SECTION
APPENDIX 8
'. . . . . . .. MANAGEMENT PROPOSAL REQUIREMENTS
APPENDIX C ........................•....•........ ,SPECIFICATIONS,
MULTI-CHANNEL COMMUNICATIONS RECOBDING SYSTEM
ATTACHMENT A(1)
ATTACHMENT A(2)
:
-'
:
CORRECTIONS CENTERS
'. MONITORING/RECORDING EQUIPMENT
ATTACHMENT A(3) ...............• WORKITRAINING RELEASE FACILITIES
ATTACHMENT B
GENERAL TERMS AND CONDITIONS
ATTACHMENT C
EQUAL OPPORTUNITY ASSURANCES
ii
000322 .
REQUEST FOR PROPOSAL
NO. CRFP2562
STATE OF WASHINGTON
DEPARTMENT OF CORRECTIONS
INMATErrELEPHONE SYSTEM
1-1
GENERAL INFORMATION REGARDING PROJECT
A.
Definitions for the Purpose of this RFP
1.
Bidder-Person or company submitting a proposal in order tc..attain
a contract with the Department.
2.
Contractor-Person or company whose proposal has been accepted
by the Department and is awarded a formal written contract.
3.
B.
. Department- The Department of Corrections, Division of Prisons.
4.
DOC;. The State of Washing!on, Department 01 Corrections.
5.
Correctional Facilities- Correctional Institutions and Work Release
.facilities within the jurisdiction of the Department of Corrections.
6.
OCR- Office of Contracts and Regulatk;ms.
Purpose
The State of Washington Department of Corrections, hereinafter referred to
as "Department", is seeking a qualified revenue producing Operator
Assisted Telephone Service, to handle the inmate telephone services for
Correctional Institutions and 'Work Release Facilities listed on attachment
A, attached and incorporated as part of this proposal. Inmate telephone
services are currently being provided within all jurisdictions of the
Department It is the Department's goal to collect the information necessary
for the evaluation of competitive proposals submitted by. qualified bidders, .
which will eventually result in a contract' between the successful bidder and
the DOC. This request for proposal is intended to provide qualified bidders
with information which will permit them to respond to the DOC With a bid to
provide inmate telephone service, wiring, and all associated equipment at
all locations listed in attachment A plus inmate monitoring, recording
-- - - - - - _ . -
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-- - - - - - - -
-
-
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- --
--
-
-- --
--
-
--
-- -
-
hardware/software and associated equipmentat all medium and maximum
institutions listed on attachment A.
C.
Background
WAC 137-48-080 states that telephone facilities shall be provided in
appropriate numbers and locations to permit reasonable an:d equitable
access to all inmates, except those of the reception center and disciplinary
segregation. Following the intent of the WAC, the DOC in 1980, provided
phone access to all offenders in community residential facilities and
correctional institutions. Each facility has traditionally been allowed to
determine its own guidelines for telephone availability, maximum length of
calls, 'and limitations of inmate phone use sUbject to the approval of the
Secretary.
1-2
SCOPE AND OBJECTIVES
A.,
Scope
The inmate telephone service, as defined in this document,shall include all
inmate phone service, including intraLATA and interLATA, international'
calls, long distance and local calls. The inmate telephone system will
handle operator assisted calls only, that are billed to a location other than
the originating station. The telephone service will also provide attorney
phones. It will also have the ability t6 block from usage any number or
series of numbers requested by DOC; Le.., 800, 900, 976, areas, 555 and
intemational directory assistance calls. Any requests for calls other than'
collect shall be refused. Contractor have the ability to provide problem
resolution of inmate phone service ~ithouf any utilization of DOC staff.
B.
Objective
A successful proposal shall include an evaluation which shall address the
following factors: '
.
- Provide a recording/monitoring system of inmate telephones at no cost to
the agency.
- The ability to provide problem resolution of inmate service without any
''
,
'
utilization of DOC. staff.
- The ability to block from usage any number or series of numbers
requested by DOC.
2
O,d)1./ (\l) 3.2/-j1
- Provide intraLATA. interLATA, international, long distance and local calls.
- Assumption of full financial responsibility for any costs associated with
charges related to fraudulent credit use, incorrect, non-working or nonexistent telephone numbers used for collect calls or any- fraudulent act.
- Provide telephone sets, lines, wiring, calling, enclosures, associated
equipment at no cost to agency.
-Provide moqthly usage and financial statements to include telephone .
numbers called from each inmate telephone, at no charge to DOC within 30
days of the previous month.
:Pr6vide attorney phones to operate without monitoring/recording capability.
Telephones must be located where staff members can view inmates making
calls. Cut off keys must be provided so staff. can activate phones.
-Provide information to DOC facilities:.Le.. name, social security number,'
date of birth, and photo Ld. prior to entry of any DOC facility. ,Contractors
must make the appropriate arrangements with each institution work training'
release facility to provide this information.
,
-Ability to provide additional telephone service to new facility locations as
needed.
.- Provide phone service which is compatible with 'telephone monitoring
/recording equipment (Dictaphone/Call Watch).
-Contractor shall also maintain sufficient records showing date, time and
, 'nature of services rendered to permit verification by the DOC. These
records shall be subject to inspection by DOC and the State Auditor. DOC
shall have the right to audit Pre-Subscription Commissions both before and
after payment by Contractor. Payment under this Agreement shall not
foreclose the right of DOC to recover illegal payments by Contractor.
- Provide the service, etc...with rates no higher than the standard of U.S.
West and AT&T with a commission to the Inmate Welfare Fund of each
institutionlWork Training Release facility.
1-3
PROJECT REQUIREMENTS
Within the scope and objectives described, the successful Contractor must also
demonstrate the following: .
. '
3
() (1 n ') 'f) ~
,l IVU'-'4J
.. A detailed description' of the overall project, equipment (phone monitor
Irecording), and management plan in narrative form.
- The completed technical and management proposals.
- For circumstances where proposer cannot comply with individual DOC request,
a written list of exceptions and reasons why compliance is not possible. The
explanation of exceptions should be supplied on the technical and management
proposal checklist Which is supplied within the RFP.
- The proposal must"include a definition of applicable terms and how they will be
used within the proposal. Specific examples must be included of the terms used
in specific c!rcumstances.
. 1-4
PERFORMANCE PERIOD
The period of performance of any contract resulting .from this RFP is tentatively
scheduled to run five (5) years and begin on or about November 5, 1991 and be
in force through June 30, 1996.
Amendments extending the period of
. performance, shall be at the sale discretion of the Department. Any additions,
regardless of date, during the term of this Contract, shall expire on the same date
as the expiration or termination date of the contract.
'
1-5
GENERAL INFORMATION
The Contractor shall be provided with a list of Department officials who shall be
responsible for implementation of the resultant contract, both at the Institutions and
with the Department.
1-6
RFP MODIFICATIONS
.
The Department reserves the right to modify this RFP at any time. In the event
it becomes necessary to TDodify or revise any part of this RFP, addenda will be
provided to all bidders who receive the basic RFP.
,
4
000326
j
SECTION /I
PROPOSAL INSTRUCTIONS
11-1
ISSUING OFFICE
The issuance of this RFP has been approved by the Secretary of the Department
of Corrections. The RFP Coordinator is the sole point of contact in the state for
this selection action. Throughout the duration of this process, all requests for
copies of the RFP and communications are to be directed to the RFP Coordinator:
.Kay Wilson-Kirby, Assistant Administrator/Operations
Office of Contract and Regulations
410 W. 5th
P.O. Box 9699; FN-61
Olympia Wa. 98504
Phone: (206) 753-5770 .
Communications directed to parties other than the. RFP Coordinator may result in
. disqualification of the. bidder.
11-2
PRE-BID CONFERENCE
A Pre-Bid Conference will be held at 10:00 AM, September 11,1991, for potential
bidders at DOC Headquarters, CENTER ANNEX CONFERENCE ROOM, 417
West 4th Avenue, Olympia Washington 98504. The purpose of this conference
is to allow potential bidders to ask questions arising from the review of this RFP.
Attendance at this pre-bid conference is not mandatory for acceptance of bid. .
DOC is strongly recommending all prospective vendors who do attend, to .bring a
technically orientated person with them for this pre-bid conference.
Any changes and/or clarifications to this RFP as a result of the pre-proposal
conference shall be made in writing and distributed to those ~ttending this
Oral
conference, as well as those who did not attend this conference;
interpretations shall not be binding on the department. Because of the schedule
of events outlined above, questions cannot be accepted or answered after the
proposal conference.
11-3
PREPARATION COSTS
The Department shall not be .liable for any costs asSociated with the preparation
5
•
of a propqsal submitted in response to the RFP.
11-4
BIDDER AND PROPOSAL REQUIREMENTS
A.
Eligibilny
Bidders must be able to provide either intraLATA service and
recording/monitoring equipment or interLATA including international calls,
to be eligible to bid.
B.
Qualification Requirements
The successful bidder must possess the following minimum qualifications:
1. Be licensed to do business in the state of Washington, if requi~~~ by
state law and meet Utilities and Transportation and FCC requirements.
Bidders who do not meet these minimum qualifications shall be deemed
nonresponsive and will not receive further consideration.
11-5
PROPOSAL -FORMAT AND CONTENT REQUIREMENTS
A.
Proposal Format and Content
There ~hall be two sets.of proposals submitted. One set will include phone
service information; the second set will include phone monitoring/recording
information. The Phone Monitoring/Recording proposals must be separately
submitted and cannot be included within the Telephone Service Proposal.
Proposals must b~ prepared on 8 1/2" x 11" white paper (11" x 14" paper
is permissible for. charts, spread sheets, etc.) and all typing must be
doublespaced, with one inch margins on the sides, and placed in binders
with tabs separating the major sections. Each proposal is to be in sufficient
detail to permit evaluation. Proposals must be submitted in the format
outlined and must contain, at a minimum, all items listed in the sequence
shown below.
1.
Technical Proposals:
Define all work requirements necessary to accomplish the objectives
and requirements as set forth in Subsection 1·2 and 1-3, and the'
6
information called for in Subsection 11-5 of the RFP. (See Appendix
A.) .
.
TECHNICAL PROPOSAL
RFP NO. CRFP-----
2.
Management Proposals:
.
.
The management proposals must contain the information called for
in Subsection 11-5 of this RFP. (see Appendix 8.) Submit five (5)
copies. Place the five (5) copies of the managemen~ proposal in a
. plain, sealed envelope marked on the outside:
MANAGEMENT PROPOSAL-----RFP NO CRFP---~---
3.
.Cost Proposals:
The cost proposals must include a budget that complies with the
requirements set forth in subsection 11-9 of the RFP. Submit five (5).
copies. Do not identify the respondent in any way in the proposal or
on the envelope. Place the five (5) copies of the cost proposal in a
plain, sealed envelope marked on the outside:
COST PROPOSAL------RFP NO. CRFP-------
11-6
PROPOSAL VALIDATION PERIOD
.
.
The bidder must agree, in writing, that proposals are valid for 90 days after
receipt by the Department. . The rates and percentages quoted must be
valid for 90 days and a second set of figures provided that shall be valid for
one year after the receipt of the proposal. Ttie validity period associated
with the sets of figures must be clearly written in the proposal. If the
proposal is vague or does not specify the period of time for which c9st
. estimates are valid, jf may be considered nonresponsive to this section and
the proposal may be rejeCted.
7
000329
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11-7
EVALUATION PROCEDURE
The evaluation of proposals for each contract will be accomplished by a
committee that will determine which proposals are most responsible and
cost effective. The top three firms may, at the committee's discretion, be
required to make a presentation of their proposal to the evaluation
committee at the DOC Headquarters in Olympia, Washington, on or about . October 15,1991. A recommendation will be made by the committee to the
Secretary. The Secretary will make the final awards after review of the
recommendation of the committee. The DOC will evaluate the ability of the
contractor to provide inmate phone service and monitoring/recording
equipment, consistent with the needs of the institutional facilities. DOC will
also evaluate the Contractor's ability to increase telephone service for
additional and future correctional facilities, which may be on line within the
next few years. Other vital components of the DOC's evaluation will consist
of the following:
- The proposed price levels (amount to be bllied the customer) and
percentage of monetary remuneration returned to the State tor both
telephone monies as well as an access fee (cable) to inmate
telephones.
.
- The jUdgment of DOC officials relative to not only the ability, but
,the sincerity and willingness of the Contractor to provide inmate
telephone services and monitoring recording/equipment to DOC both
for facilities currently in operation and any new facilities which may
be built in the future.
- Evaluation of proposer's responses to mandatory requirements of
the RFP. The evaluation will include completeness of responses,
neatness, ease of locating material and/orfinding information, quality
of information and short concise responses made in such a way that
they are easily understood by a lay person.
~
DOC's belief of contractor's ability to increase services provided for
in contract, to ariy new correctional facilities which may be built in the
future.
In evaluating each proposal, the committee will consider the Jollowing:
:. How well the proposal meets the program objectives of this RFP.
~
Information submitted in response to the RFP.
8
- The proposer's technical approach (repair, equipment and service
information). (See Appenqix A.)
• The qualifications and background of proposers staff to be
assigned to the institutions. (See Appendix B)
- The proposer's previous and successful experience in representing
. institutionalized persons and/or criminal defendants. (See appendix
B.)
• Other questions. relating to the proposers organization. (See
Appendix A)
,
• Compatibility of Telephone Monitoring/Recording equipment with
Telephone Service System.' Telephone Monitoring/Recor-dinq
System must be Dictaphone/Call Watch.
- Participation by minority and women's business enterprises certified
by th'e Office of Minority and Women's Business Enterprises.
- Questions relating to a competitive commission without denigrating
the level of service. (See Appendix A.)
Scores awarded the proposals will be utilized for determining those firms asked to
make a brief personal presentation for their proposals. Final recommendation shall .
be made by the commit:tee considering both the oral presentation and the written
proposal. ,The DOC reserves the right to. contact proposers for clarification of
definitions, terms and other information which is not easily understandable. The
DOC reserves the right to award this contract not necessarily to the bidder
providing the highest commission to DOC, but to the bidder that demonstrates the
. best ability to fulfill the requirements of this RFP, after considering the factors of
price, quality, service, responsiveness and expertise.
.
11-8
SCHEDULE OF ACTIVITIES AND DEADLINES
A
Schedule of Activities
The following schedule of activities must be adhered to by all bidders.
Bidders mailing proposals should allow normal mail delivery time to ensure
timely receipt of their proposals by the issuing office (RFP Coordinator).
LATE PROPOSALS WILL NOT BE ACCEPTED, NOR WILL TIME
EXTENSIONS B.E GRANTED.
9
000331
~
B.
1.
RFP available to Potential Bidders
September 4, 1991
2.
Pre-Bid Conference.
September 11, 1991
3.
Deadline for Receipt of Pr9posals
October 9, "1991
4.
RFP Evaluation Date
October 10,11 J 1991
5.
Oral Presentations
October 15, 1991
6.
Notification of successful bidder
October 16, 1991
7.
Contract begins
November 5, 1991
" Bidder's Proposal
Five (5) copies of each proposal and five (5) copies of all supporting
documentation, whether mailed or hand delivered, must be received at the
RFP Coordinator's Office· no later than 5:00 pm Pacific Daylight time,
October 9, 1991. The proposals shall be addressed as follows:
Kay Wilson-Kirby
Office of Contracts and Regulations
Department of Corrections
410 W. 5th Avenue
P.O. Box 9699; FN-61
Olympia, Washington 98504
Proposals must be signed by a dUly authorized officer'of the bidder's firm.
No other diStribution of the proposal is to be made by the bidder.. All
proposals and accompanying documentation become the property of the
Department and will not be returned unless identified as "proprietary
information". DOC shall. have the right to use any or all ideas or
adaptations of the ideas presented in any proposal received in response to
this RFP. Selection or rejection of the proposal will not affect this right.
Any restriction on the use of data contained within a proposal must be
clearly stated in the proposal itself. Proprietary information submitted in
response to this RFP will be handled in accordance with applicable
Washington DOC Regulations.
The content of the proposal of the successful bidder will be included by
reference in any resulting contract,
.
10
n.nQ·3"
O'UUv
2"
The proposals must be signed by a person(s) authorized to legally bind the
bidder.
The proposer will be' required tb post a" performance bond or a
periormance/payment bond in an amount and on a form acceptable to the
DOC which will be negotiated by DOC. Such bond shall be for the purpose
of guaranteeing ,satisfactory performance of services required hereunder
and the payment of commissions due or owing the DOC.
11-9
REJECTION OF PROPOSALS
DOC reselVes the right to reject any and all proposals received, in whole and in
part. DOC will not pay for any information herein requested, nor is it liable for any
costs incurred by the bidder in the preparation or response to this RFP. The final
selection, if any, will be that proposal which, in the opinion of the Secretary, after
review of all the evaluations and recommendations of the evaluation committee,
best meets the requirements set forth in the RFP and is in the best interest of the
DOC.
Proposals providing less than 60 days tor acceptance by the DOC from the date
set for the receipt of proposals will be considered non-responsive and will be
rejected. Proposals that do not address all areas reqOuested by this~FP may be
deemed non-responsive and may not be considered for any possible contract
awarded as a result of this RFP.
Should DOC and the proposer selected be unable to negotiate a satisfactory
contract, the proposer's proposal will be rejected and DOC will enter into
negotiations with the proposer submitting the next best proposal~ as ranked by the
evaluation committee and the Secretary.
11-10
ADDENDUM/MODIFICATIONS
Any interpretation, co~rection or change of the RFP Will be made by addendum:
o
Interpretations, corrections or changes of the RFP made in any other manner will
not be binding, and bidders shall not rely upon such interpretations, corrections or
changes. Any changes or corrections will be issued by the DOC Contracts Office.
Addenda will be mailed or delivered to all who are known to have received an RFP
and who have attended the pre-bid conference. No addenda will be issued later
than ten (10) days prior to the date for receipt of bids except an addenda, if
necessary, extending the date for receipt ofobids or withdrawing the RFP.
In the event it becomes. necessary to revise any part of the RFP, addenda will be
provided to all persons who receive the RFP. If any proposer ohas reason to doubt
°
°
11
_0__ -
0
_
_
_
0
0
-0----0---- - -
~-_
whether DOC is aware of the proposers interest, it is incumbent on the proposer
to notify DOC to ensure that addenda are received. Mail or call such notice to:
. Department of Corrections
Office of Contracts and Regulations
ATIN: Kay Wilson-Kirby
410 West 5th
P.O. Box 9699
Olympia Wa. 98504
RFP Number: CRFP2562
Phone Number:
11-11
(206) 753-5770
EQUAL OPPORTUNITY ASSURANCES
RESPONDENTS REQUIRED ,BY STATE OR FEDERAL LAW TO HAVE
AFFIRMATIVE ACTION PLANS MUST BE PREPARED TO PROVIDE TO DOC,
UPON REQUEST, COPIES OF THEIR CURRENT AFFIRMATIVE ACTION PLAN
AND RECENT EVALUATION OF THAT PLAN. RESPONDENTS NOT REQUIRED
BY LAW TO MAINTAIN AN AFFIRMATIVE ACTION PLAN MUST COMPLETE
AITACHMENT "C" TO THIS RFP AND RETURN IT WITH THE PROPOSAL.
11-12
ESCAPE CLAUSE
DOC reserves the right to waive specific terms and conditions contained in this
RFP or cancel th.e RFP altogether if conditions necessitate such an action. It shall '
be understood by the proposer that the proposal is predicated upon acceptance
of all terms and conditions contained in this RFP unless the respondent has
obtained such waiv~r in writing from DOC prior to submission of the proposal.
Such a waiver, if granted, will be applicable to all proposers.
11-13
MINIMUM ACCEPTANCE BID PERFORMANCE LEVELS
'\
Requirements, as set forth in this RFP, are meant to indicate only the minimum
acceptable levels of performance.
12
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--
-----
----------------~- - - - -
Proposers should present their proposal in such form as"to meet or exceed the
minimums stated. The evaluation committee will consider proposals as they relate
to providing the best telephone service - monitoring/recording equipment for the
facilities.
.
Proposers should present a proposal which will indicate how services will be
provided, monitored and evaluated. Proposals setting forth clear, c.oncise and
quantifiable/measurable programs will be received more favorably than those which
do not.
11-14 NOTICE OF AWARD OF CONTRACT
DOC will endeavor to notify all proposers on or about October 16, 1991, which
proposers DOC has selected to negotiate contracts.
11-15
MISCELLANEOUS PROVISIONS
.
11-16
,
A. •
Authority to Bind DOC: The Secretary is the only individual who may legally
commit DOC to the expenditures of public funds. No cost chargeable to the
proposed contract may be incurred before receipt of either a fully executed
.
contract or a specific, written authorization from the Secretary.
B.
Attachment B: The "Equal Opportunity Assurances" form must be signed by
the President or Executive Director of a corporation, the managing partner
of a partnership, or the proprietor of a sale proprietorship .and returned with
the proposal.
C.
Signature: All proposals must be signed and dated by the President or
Executive Director of a corporation, the managing partner of a partnership,
or the ,prC?pri~tor of a sole proprietorship.
.
DEBRIEFING OF UNSUCCESSFUL VENDORS
A.
Bidders protesting this award shall follow the procedures described herein.
Protests that do not follow these procedures shall not be considered. This
protest procedure constitutes the sale administrative remedy available to
bidder under this procurement.
.
.
. -Upon exhaustion of this remedy, no additional recourse is available within .
the Department. Chapter 34.04 RCW, Administrative Procedures Act (APA)
does not apply to this procurement.
.
13
000335
B.
Upon receipt of a protest. a protest review will be held by the Contracts
Office to review the procurement process utilized. This is not a review of
proposals subm'itted or the evaluation scores received. The review is to
ensure agency policy and procedures were followed, all requirements were
met and all bidder:s were treated equally and fairly.
C.
. Only protests setting out an issue of fact concerning a matter of bias,
discrimination or conflict of interest, errors in tabulation, or noncompliance
with procedures described in the procurement document or agency policy
shall be considered.
0:
All protests must be in writing and signed by the protesting party or an
authorized agent. Telegrams or·similartransmittals will not be considered.
The protest must state all facts and arguments on which the prot~sting
party is relying, and addressed as follows:
Contracts and Regulations Administrator
Office' of Contracts and Regulations
Department of 'Corrections
P.O. Box 9699
Olympia Wa 98504
If a protest may affect ttie interest of any bidder, such bidder(s) will be
given an opportunity to submit its view and any relevant informationori the
protest to the Contracts and Regulations Administrator.
E.
If the protest involves the rejection of a proposal, the -protest must be
received by the Contracts Office no laterthan 5:00 pm, on the fifth business
day following bidder's receipt of the notice of rejection, whether oral or
written, or the announcement of the apparent successful bidder, whichever
occurs first Only those who are eligible to submit a-proposal under the
criteria established by the OCR may protest the rejection of a proposal.
F.
OCR will consider the records and all facts available and issue a decision
within five business days of receipt of the protest unless additional time is
required, in which case the protesting party will be notified by the OCR of
the delay. The decision of the OCR will be final and conclusive.
14
11-17
GENERAL TERMS AND CONDITIONS
The General Terms and Conditions attached to this RFP as Attachment "B" will be
incorporated in any contract awarded pursuant to the RFP. The Definitions section
of such General Terms and Conditions shall apply to this RFP.
.
I
1-5
000.337
APPENDIX
A
TECHNICAL SPECIFICATIONS SECTION
Each statement the company can comply with must be initialed by
the company representative authorized to·negotiate this contract.
For other responses requested, the answer must be given and
initialed.
If the company cannot comply with a statement, an
" exception" must be noted.
For each statement requiring
additional information, a separate sheet must be provided and
identified by the section, sub-section and number assigned.
A.
Service
1.
Can provide operator services
trained to DOC procedures
including but not limited to the
"operator announcement" as'mandated
by the Drug Omnibus Bill, Chapter
271, Laws of 1989.
2.
If·using computer generated operator
service, can provide rotary dial
collect calls within the same time
frames as touchtones.
3.
If using computer generated operator
service, can provide capability'for
called parties with rotary dial phones
to accept calls. Provide method on a
separate sheet and label technical *3.
4.
Can provide 'service with no
surcharge to called party or
DOC.
5.
Can provide a private line for
each telephone set.
6. - Can provide telephone sets, all
associated equipment, and lines at
all listed DOC locations.
7.
Can provide precise equipment clocks
(timing mechanisms). Attach
certificate of accuracy and
mark. technical #7~
Page 1 of 5
Yes
No
Yes
8.
Can provide credit for a'bad
connection.
9.
Can provide a P.Ol grade of
service.
11.' Can provide "busy II or IIno
an Swe-r II condition at no charge.
12.
Can provide answer supervision.
13.
If using computer assisted
operator service, can provide
technology that can detect
messages, voice recorders
and hang up immediately.
14.
Can provide telephone sets, all
equipment., lines,. calling, recording
monitoring, hardware/software and'
associated equipment and local,
intraLATA services. If contracts
with other vendors, please provide
a copy of contract(s) and mark
'Technical #14 for evaluation
identification.
15.
Can provide interLATA and international
calling services. If contracts with
other. vendors, please provide copy of
contract(s) and.mark Technical #15 for
, evaluation identification.
16.
Can install public and inmate
telephones, associated equipment
wiring hardware and enclosures
at each listed institution/work
trainlng release facility.
17 .. Can provide monthly usage and
financial statements to include
telephone numbers called at no
charge to DOC. Attach examples'of
statements the company would
utilize. 'Provide information on
separate sheet and label technical
service #17.
18.
Can provide the monetary amount, if
any; of the minimum revenue threshold
for each phone location. Provide
Page 2 of 5
No
Yes
No
information on separate sheet and
label technical service #18.
:9.
Can provide proposal of plans to
interface with the local operating
companies , i . e ., Public Access, Lines
(PAL), access charges. Provide
copies of proposals and mark
Technical,#19.
20.
Can provide telephone instruments,
conduit, cabling, lines and
associated equipment, at each listed
facility. Can maintain a minimum ratiQ
of 1 telephone and'line for 20 inmates.
Ideal ratio is one telephone per 15 inmates
except as required by DOC for security
i.e.~. a lower ratio for hospital high
security are'aswithin institutions.
21.
Can capture and account for all
local, intraLATA and interLATA
and international calls ..
22.
Can provide rate schedule for
collect calls. Attach schedule
and mark Techriical #22.
23.
State whet·her or not your rates are more/less expensive
than:
ATT
more
less
percentage.
'%
Mer
more
less
percentage
~
0
SPRIN':'
more
less
percentage
%
US
more
less
percentage
.% .
-more
le~s
percentage
%
WE~'"
~-
Others
,Provide rate schedule, marked Technical #23.
Z~.
Can provide operator center
equipment ind~cating calls
are from prison inmates.
00034f)
Page 3 of 5
No
Yes
25.
Can provide direct payments
by way of monthly checks
to each facility.
26.
Can comply with the
requirement to block telephone
numbers that inmates are not
allowed t~ call and provide a
method to get back to inmates
for problem resolution. Provide
information on method on separate.
sheet and label Technical #26.
27.
State the time frame required to
add, change or cancel a blocked
number. Provide information on
separate sheet and label technical
#27.
28.
Can comply with the requirement
for system redundancy.
29.
Must comply with the requirement
for disaster-recovery plan. Attach
copy of plan and label Technical,
#29. Certify that you have
- a disaster recovery plan.
30.
State the compensation rate and
type; i.e., net, billed revenue, etc.·
Attach an explanation of definitions
for the terminologies and example~
used in the proposal; and, label
Technical #30 for evaluation identification (separate sheet) .
31,
State the fee for an operator assisted
local call and indicate whether it is a
flat fee or per minute cparge. Provide
on separate sheet and label
technical #31. -
32.
State the number of calls that
can be handled simultaneously.
33.
State the time increment charges
(separate sheet and label
technical #33.)
\
000-341
Page . of 5
- - - - - - - - - - - - - --------
._--~
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-
-
--
---
-
-
-
Yes
34.
Can provide call,forwarding
blocking?
35 .. Can provide call length
delineators?
Reoairs
36.
Provide location, telephone
numbers and number of installers,
and repair persons that would be
serving the Department of Corrections
State of Washington facilities at
each institution/work training release _.
facility of the Department
Attach a list and'mark Technical,
Repairs #36.
37.
Cari provide information on how
repair problems are detected and
reported. Attach information and
label Technical, Repairs #37.
38.
State the response time for repairs
from time reported to technician to
technicians arriving on site. Attach
information and label Technical Repairs'
4/:38.
39.
Can service and repair all inmate, public
telephones, and associate~ equipment
monitoring/recording, hardware/software
and associated equipment at contractor's
expense.
Eauinme!1t
.....
4"
-
Can comply with requirement for
equipment for the hearingirnpaired
meeting Federal and State Law
standards.
4:.
Can comply with the requirement
of equipment registration with
FCC. Attach a copy of proposed
equipment FCC numbers and label
:Technical, Equipmell1:#41.
Page 5 : f 5 .
No
Yes
42.
Can provide brochures, warranties,
information pertaining to equipment
to be provided for inmate/pay phone
services. Organize and label
Technical, Equipment #42 for
evaluatio~ identification.
.
43.
Can provide cut off keys for each
inmate telephone set, to be located
at each institution as directed by
'No
DOC.
44.
Can remove phones on a temporary
basis for building expansion or
renovation and reinstall. at no
cost to the agency.
~5.
Provide copy of written operational
procedures to be posted at or
near inmate phones on date of· cut over
and label technical Equipment #45.
~6.
Can provide emergency maintenance,
on site response time within three
(3) hours for 95% of all emergency
maintenance calls 24 hours a
day, seven (7) days a week.
~7
. . Can provide routine maintenance
on-site response time within
twenty-four (24) hours after
receipt of a routine maintenance
call and 'perform during normal
business hours 8:00am - 4:30pm
Monday through Friday.
';8.
~9.
Can provide an on-site status
report to the designated on-site
coordinator and maintain daily
detailed trouble log for Dept.
perusal.
Provide a description of
-maintenance organization capable
of maintaining'the installed
equipment and software on
seoaratesheet and label technical
eqUipment #49.
Page - of 5
1----- ---- .-- -~-~---- -
000343
Yes
50.
No
Can provide telephone sets of
high quality, with amplifiers
when required and noise
cancellation devices.
Instal:ation/lmplementing Schedule
. Provide an implementation plan
and installation schedule for
all services, equipment being
proposed. Separate sheet and
label technical *51.
000344
?age 7 -- 5
"-
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-
--
.~
.. _ - - - - -
..
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-----------------
.
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APPENDIX B
MANAGEMENT PROPOSAL REQUIREMENTS
A.
-~entifyina
2.
":.
- ..
B~
What is the name .of your company?
What is·tht:: address of your
company?
What is the telephone number for
your company?
What is the name of your company's
principal officer?
What is the name of your company's
project leader for inmate telecommunication service?' .
What is your company's Washington
business license r.uIti.ber and employer
identification nu~~er?
How many' telecommunications staff
does your company employ?
Where is your company headquarters
located?
;~~erience
L..
Information
of Proposer
What is the length of time that your
company has been in business in
telecommunications?
What is your company's previous
experience supplyi~g telecommunibations
service within the State of
"Washington?
If your company or any connecting
entity has previously contracted
with the DOC r please indicate the
contr~ct number and the period of
performance?
What clients has your company
serviced within the area of inmate
telephone services? List the
clients, contact person, telephones
?age 1 of 2
000345
numbers and addresses. A minimum of'three
contacts must be provided for
references. Attach separate sheet
and lapel Management B.#4.
*
?lease supply, an organizational chart of your company to
~nclude the following information: Label management B.#5.
principal officers of your company.
key staff to be assigned or employed for inmate and pay
telecommunications services.
qualificatio~s of key operations personnel.
the authority of ?ersonnelinvolved in t0e performance
of this potential contract.
the relationship of this specific, staff to o"C.her
programs or functions in your company.
?ersonnel/Hirirta'
Will your company assign live operators
to the institutions? (If exceptions,
please explain on a separate sheet of
paper and label Management C. #1.
,Will your company assign operators
who are specially trained to handle
inma"C.e calls?
What type of calls will your operators
accept from inmates? For example:
--credit card calls
--3rd party' billed calls
--directory assistance calls
--collect calls
-::
.
'How may operators will be assianed
to handle institution calis? --1 to 2
--2 to 3'
--4 or more
Will your company ~ave installation
and maim:.enance personnE?l ~'I'it:t;l.in
?aqe'2 of 2
0003.46
reasonable access to installation
sites?
Are your operators and staff familiar
with the requirement for call
recording and monitoring of
inmate calls for correctional
facilities?
*
C::ltractors must assure that they are able to comply with
~:. -;
relative state. and Federal regulations and insurance
~eauirements, as well as the ability to obtain any reauired
:"~enses or permits which may be necessary.
It shall rre the
~esponsibility of the CQntractor to ascertain if permits or
'~enses are reauired.
:age
a of
2
000347·,
APPENDIX C
SPECIFICATIONS
MULTI-CHANNEL COMMUNICATIONp RECORDING SYSTEM
1.00 GENERAL
This specification covers logging tape recorder/reproducer systems
.designed to provide recording of 4 to 240 channels plus the
time/date signal mUltiplexed on one channel with' aUdio.
The
equipment furnished under this specification shall be designed for
continuous duty operation, i. e. 24 hours per day, 365 days per
year.
1. 01.
All equipment supplied under this specification shall be
completely operational when
installed.
After
the
equipment has been accepted and placed in service, the
vendor shall guarantee it for a period of one year. and
will replace, free of charge, any parts, thereof, which
become broken or defective, except by reason of accident,
'misuse, or any casualty, during such period.
1. 02
The vendor will make all necessary adjustments to this
,system, not required by reason of accident, misuse, or
any casualty, at the vendor1s expense for a period aE ~
days from date of installation.
1. 03
A first years maintenance agreement shall be provided.
The vendor guarantees to
accept
annual
maintenance
agreements for at le~st a 5 year period without
additional charges for overhauls.
1.04
service technicians directly employed by the equipment
·manufacturer must be available to respond within one'
working day in the event service is required. pescribe
local service organization along with telephone number
and address on a separate sheet.
certificates of
training courses completed on the equipment proposed by
the responsible technician shall be included with the bid
response.
1. 05
The vendor ,shall guarantee parts,support for all items
under this specification for a period of not less than
five (5) years.'
1. 06
This successful vendor shall supply' a comprehensive
technical manual, complete with all schematic and wiring
diagrams, printed circuit board drawings, and parts
. listing.' The. successful vendor· shall also provide an
easy to read comprehensive operation instruction book as
well.
1. 07
The vendor shall be responsible for the installation of
" all equipment covered by these specifications.
000348
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-.-.
1.08
All equipment in this specification shall be delivered
.no later than sixty (60) days after receipt of or.der.
F.O.B. point shall be destination.
1. 09
The vendor shall provide on-site training and instruction
for all operators, covering all equipment supplied under
this specification. This training is to be performed by
direct employees of the equipment manufacturer.
1.10
The recorder/reproducer shall be agency approved by the
following .agencies: UL, CSA, DOC, and FCC part 15 and 68.
The machine will have the appropriate markings on the
label.
loll
All vendors responding to this specification'must check
in the appropriate box provided if they fully com~~y or
not..
If the do not comply box is marked, a full
explanation of the non-compliance must be included on a
separate page. Failure to complete this requirement is
cause for bid rejection.
.
1.12
All vendors responding to this specification must supply
a list of at least three local references
using
the
system being quoted.
l.l3
All
vendors responding to this .specification shall
an audited financial statement. If a vendor is
proposing a system that is not manufactured by them, ~
an. audited financial statement of the manufacturer must
be included as well. Failure
to
complete
this
requirement is cause for bid rejection.
incl~de
1.14
2.00
All
equipment
in
this
specif ication
shall
have
incorporated the necessary mOdifications
to
allow
installation to meet seismic bracing codes if
required.
C~NTRAL
CONTROL CRT MODULE
2.01
A master control module shall be provided that can fully
control up to four transport modules.
This master
controller shall contain a 9# ·monochrome CRT a n d
incorporate a series of easy to read screens.
The
controller shall have a membrane switch containing five
soft keys, a dedicated "previo-qs screen# key, m:nreric keY
pad 'and a manual variable speed search strip associated
with it.
2.02
This cen1:ral control CRT shall also contain a volume
control, speaker, headset and cassette jack and be an
integral part of the system·design. Any OEM'ed.P
C
equipment is unacceptable.
~-------
------- ---I
2.03
The playback amplifier in the control module shall
provide 5 watts of audio at the speaker and headset jack
with a fixed -6 dEm at the cassette record jack.
2.04
The central control CRT shall contain a microprocessor
that wiil act as a system controller and will provide all
control and monitoring for up to four transports.
2.05
The central control CRT shall contain a master clock that
synchronizes all of the individual transport clocks and
will display the time/date information from any ~
on the' CRT screen through a prompted series of key
strokes.
2.06
The central control CRT ,shall display a playback s9+een
with the total number of channels indicated individually.
Anyone, or all up to four transports may ,be played back
through the controller. Anyone, any combination or all
channels may be selected through the numeric key pad for
. simultaneous playback through the speaker, headphone jack
or cassette record jack. Channel' selections will clearly
show on the CRT screen in reverse video.
.
In addition, an automatic noise eliminator circuit can
be enabled during playback to filter out background noise
and enhance the playback clarity.
.2.07
The central control CRT shall 'provide a channel audio
activity monitor. This monitor will 'provide visual
indication of active audio recording or active playback
audio by channel.
This will be shown in highlighted
video on the screen for each individual channel.
2.08
The central control CRT shall provide the ability to
automatically search any previously recorded tapes on any
of up to four transports. The auto search feature i s
initiated through a series of CRT prompted inputs. The
date/time desired is displayed on the CRT screen and auto
search initiated. The transport, under the command of
,the central controller will search at a high speed to
locate the desired time/date and stop with no overshoot
and begin playing.
2.09'
The time/date informat:.ion displayed on the CRT during the
aut.o search function 'shall be the real time off tape.
Any computer genera~ed simulated times shall not b
e
acceptable.
2.10
The central 'com:rol CRT initiated auto search function
shall be carried out at fast speeds of up to 706 to 1
allowing the ·acquisition of any time/date address in less
than 140 seconds.
n. r." Cl. ·t\':O···.
O.!.UUvo""
I.
2.11
The central control CRT shall provide the capability to.
. manually search any of up to four transports.
This
manual search will allow full variable (from 0 to 400
times normal record speed) speed control either forward
or reverse from a soft membrane strip. This strip will
activate when touched with a fingertip and cause t h e
transport to move in concert with the finger movements.
When the control is released! the transport will stop and
resume playback automatically.
2.12
The central control CRT shall provide an aUdio search
mode that allows search for audio on any selected channel
on any of up to four transports. In this mode the tape
will move automatically at 100 times recorded speed over
blank tape until audio is detected.. The transport will
then go into play and remain in play until asked. to
search again by touching the soft key or approximately
10 secohds of silence are encountered. ANY SEARCH SPEED
BELOW 40 TIMES NORMAL PLAY SPEED IS NOT CONSIDERED
MEANINGFUL. PLEASE CERTIFY .YOUR SEARCH SPEED ON AN
ATTACHED PAGE.
.
2.13
The central control CRT master time clock shal:j. keep
correct time from the internal UPS battery during an
external power failure for a minimum of 24 hours. Upon
restoration of external power master time shall' be
generated and the individual. clocks in each transport
will be set with the master clock time/date.
2.14
The central control CRT shall contain the capability to
have a 3 digit machine ID number programmed into' the
system~
This, 3 digit number will be recorded on e a c h
tape along with thetimejdate information and display on
the CRT' screen when a tape is played.
. 2.15
2 .• 16
.
The central control CRT must allow the time of day when
recording is to be trans'!erred to the next deck to be.
programmed into the system. .This. transfer must 0 c cur'
automatically! everyday! controlled by the central
controller and not rely on any. mechanical sensors or
. clocks. The controller shall also provide an automatic
transfer when approximately 2 hours of tape is remaining
as well ..
Working in conjunc~ion with the search for audio
function the central control CRT shall
provide
the
ability to auto rerecord. This feature will facilitate
the automatic rerecording of one or more channels on a
single channel .of an external tape recorder.
It must
provide the rerecord tape recorder with a start! stop
signal' as well. ) This functiqn shall eliminate gaps
automatically without operation attendance or
manual
operation.
j
000351
2.17
The central control C~T shall have the apility to
auto-restore on any 'of up to four transports to a clean
tape position just beyond the last recorded message- on
the tape and automatically go into the ready to record
mode.
2.18
The central control CRT shall be capable of being
progranuned to provide automatic star~ up and automatic
shut down of the entire system at preset times on ~
days.
2.19
The central
security and
clearance to
accomplished
passwords.
2.20
The central control CRT shall display visual alarms and
sound audible alarms when any system malfunction
is
detected. These visual alarms will appear on the CRT a
indicate where the failure occurred. These prompts are
#AMP FAILURE" f
#SAFE SCAN FAILURE",
#POWER SUPPLY
#HIGH FREQUENCY
FAILURE", #LOW FREQUENCY FAILURE" ,
FAILURE", etc. The audible alarm will sound in two
distinct ways; one indicating minor failure and one
indicating major failure.
2.21
The master time clock in the- central control shall accept
time synchronization signals from a variety of 'external
sources including IRIGE. The. master clock shall a 1 s 0
provide a time sync signal to an external time allowing
it to become the master for an entire system.
--
I
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.
-------------------.-----------
control CRT shall offer complete systemallow only ope~ations with the right level
access specific functions.
This will be
by multiple levels of access by programmed
2.22
The central control CRT shall contain complete, service
diagnostic routine to allow a
service technician to
automatically trouble shoot a system and locate faults
to the board level.
2.23
The diagnostics routine shall contain a user mode that
allows auto tape-load diagnostics to the programmed.
This will occur automati~ally ~ach time a new reel i
s
loaded on a transport. This will verify recording, time
code, high & low frequency
response
and
safe
scan
operation; then switch the transport into #readyll t
0
record mode and display #PASSED"or #FAILED" on the CRT
screen.
2.24
The amount of tape remaining shall be displayed for each
transport module on the CRT screen in hours and min~tes.
2.25
The central control CRT shall allow the-selection of an
#over record II pro-cectionmode. The system while in this
mode shall not allow an operator to place a deck i n t o
record when previous recording is present on the tape
loaded for use.
2.26
The central CRT controller shall allow _ the language
selection of either English, German, Spanish, or French
to be displayed.
2.27
The central CRT controller shall allow alerts to be
cleared without removing the deck from the record mode.
2.28
The central CRT controller shall
allow
pre-programming of the transfer to and
from
savings time autornat:.ically.'
c
for the
daylight
The central CRT controller shall provide in addition to
3 levels of password security, the ability to restrict
access to certain decks, within a system as well.
,
2.30
3.00
,
The central CRT con-croller shall-display which deck has
been selected as the archive or primary deck.
~LECTRONICS/AUDIO
3.01
All electronic circuit~ shall be of modular construction
and arranged ,for quick replacement by using plug in
cards.
All plug in cards shall be accessible from the
front of the cabinet:..
3.02
All recqrder inputs should be 60k OHMS,. balanced bridging
and transformer isolated.
To facilita-ce the balancing
of all input levels, a variable level contro.l shall be
associated with each channe~ to permit operation with
audio line levels be-cween -30 dEm and +10 dBm.
Such
controls shall' be easily accessible.
3.03
The input level shall be jumper selectable
preselected range of -10,0, +10 or +20 dEm.
at
a
3.04
The universal aUdio" inputs provided shall be jumper
selectable for either current sensing telephone coupler
operation, voltage sensing telephone coupler operation, .
VOX operation, external start and be FCC approved for
direct connection to the telephope system.
3.05
Record amplifiers shall be furnished providing AGe
operation with a range of 40 dB minimum and attack time
of less than 17 ms.
Recovery time shall be 200 ms
typical for a -20 dB step change. The compression shall
be 3 dB maximum variation in record level for a 40 dB
change in input level. These plug in cards shall
be
mounted in an area with adequate space for the
requirements of up to 1.20 channels per· module with a
maximum of2 modules providing space for 240 channels.
3.06
Playback preamplifiers shall be mounted on plug· in
circuit cards with adequate space for the requirements
of up to 60 channels per transport module.
Playback
preamplifiers shall be physically located close to the
playback heads to allow for" th e
be s t
po s sib I e
signal-to-noise performance.
signal-to-noise ratio shall be a minimum of -36 dB at
standard record level or -42 dB at peak record level.
The signal-to-noise ratio shall improve to -46 dB when
the ANE circuit is enabled.
*3.08
Cross talk between channels shall be a minimum of -34 dB
below recorded signal at standard record level or -42 dB
when measured to peak record level.
*3.09
Wow and flutter shall be a maximum of 0.5% weighted peak,
at tape speed of 15/32 inches per second . . Within the
head bridge area, free tape span measurements shall not
exceed two inches.
*3.10
Limited only by tape characteristics, distortion shall
be 3.0% Third Harmonic Distortion or less at standard
record level at 500 Hz. Measurement to total harmonic
distortion is unacceptable.
*3.J.J.
At a tape . speed of 15/32 in. per second, overall
frequency response in both record and play mode shall
cover a range of 300 -3000 Hz plus or minus 3 dB.
3.12
The
depth
of
erasure
signal-to-noise ratio.
:3.13
shall
be
equal
to
the
.. The bias frequency shall be 42kHz nominal.
1.'i
no'n'""j'5
'U
U.
I
I
4.00 TAPE TRANSPORT MODULES
4.01
Each tape transport mechanism shall be designed to slide
out of the cabinet· in its own drawer for ease of access
to all components.
4.02
Each transpo~t shall be capable of recording from 4 to
60 channels.
4.03
When two or more transports are.provided, they shall be
identical and inter-changeable.
Each transport shall
function as. a standby for the other in the event of tape
run-out, tape breakage or any other failure leading to
the interrupti-on of the recording function. The transfer
from one transport to another shall be automatic, with
manual override.
A visual and audible alarm sha~l be
provided to indicate such failure and/or transfer.
4 ..04
Each transport shall be designed for #straight line" tape
threading.
4.05
For economical tape usage, each transport shall utilize
such head design as to allow the recording and playback
within the requirements of the #Electronics u portion of
this specification, up to 8 channels on 1/4 - inch tape,
up to 20 channels on 1/2 -inch or 1 '- inch tape and up
to 60 channels on 1 - inch tape.
4.06
Head assemblies shall be replaceable, without making
azimuth or zenith adjustments. Head plug-in connectors
shall be arranged such that heads cannot be clisconnected.
The ):leads, stationary tape guides and corning guides
shall all .be mounted on one precision milled bridge plate
that absolutely precludes any tape mishandling due to
. transport warpinq.
.
4.07
In two or more "1:ransport arrangements , it shall be
possible for the "1:ape on any transport to be rewound or
played back (when standby operation is not required)
without danger of erasing or affecting the operation of
another transport in any way.
4.08
It shall be possible for two or more transports in a
given system to be capable of simultaneous
recording,
without
the
,need
for
modifications,
additional
amplifiers, power supplies, etc.
*
#Dictata'De i l or approved equal must be used.
,
000355
4.09
Each transport shall provide at least 25 hours of
continuous recording, using 3600 feet of 1.0 mil base
tape, operating at a speed of 15/32 inches per second.
4.10
Each transport shall be of a 3-motor design with the tape
drive system incorporating a brushless DC-Servo speed
controlled capstan motor. The drive system shall be of
dual differential capstan or closed loop design. capstan
pressure rollers sha+"l turn on precision ball bearings
and shall be constructed of polyurethane
to
insure
constant tape drive without degradation due to hardening,'
wear, or changes due to contact with any type of head
cleaning solvent. The take up motors shall be brushless
DC, torque or speed controlled.
4.11
In fast forward and rewind modes, the oxide side o!.the
tape shall come in contact with the tap~ guides and the
tape lifters only.
These tape guides shall be of such
design as to eliminate lateral tape strain or side
pressure in the head area due to variations in the reel
packing geometry.
4.12
Each transport should incorporate a double solenoid type
of braking system' to ensure smooth and coordinated
braking of both reels. Braking time shall be ~~le.
Average braking time shall be approximately 4 seconds,
with a maximum of6 seconds from maximum fast forward or
rewind speed. The braking shall automaticallY engage
upon external power failure.
4.13
The braking system shall incorporate a #tape in motion"
optical sensing device which shall prohibit engagement
of the transport into playback mode until braking i
s
absolutely complete, even though a playback command has
been entered by the operator..
This
device
shall
completely eliminate the possibility of tape spillagen
breakage under, such operational conditions. This system
should also monitor spindle rotation on both the tape up
and supply reels to detect any tape break, spill 0
r
stall •.
·4.14
The ,following manual control buttons in addition to the
central control CRT switches shall be provided for each
transport: READY, RECORD, STOP, PLAY, .FAST
FORWARD,
REWIND. Eac.h shall be of non-locking design. Control
circuitry shall be provided with memory logic to allow
the operator to rapidly enter two control commands
without waiting :Eorthe transport to #catch Upll with the
. first· command.
(Example:
while in REWIND mode,
sequentially operate STOP and ~LAY commands.)
*
#Dictatape ll or approved equal must be used.
00035ti
4.15
It shall be unnecessary to use the STOP button as an
intermediate control command.
4.16
To enter RECORD mode, the,transport must first be in the
READY mode.
4.17
The system shall provide ease of #jogging ll operation by
first depressing the PLAY button. The FAST FORWARD and
REWIND buttons shall become momentary 'controls after play
has been entered.
'
4.18
In order to ELIMINATE EXCESSIVE HEAD AND TAPE WEAR, under
all FAST FORWARD and REWIND conditions, the tape shall
be totally free of any mechanical contact with the heads
unless the automatic or manual search function has been
entered at the central control,CRT.
4.19
A full track erase head shall be provided with each
transport, assuring #clean ll tapes prior to recording.
4.20
Each tape transport shall be capable of accepting 10 1/2,
N.A.B. reels without auxiliary
hub
adapters
being
required.
'
4.21
'One reel of recording tape and one tape-up reel shall be
provided with each transport.
(
4.22
The following LED indicators shall be provided on each
transport in addition to the indicators on the central
CRT control; READY activated by depressing READY button
(allows transport to receive transfer from another
transport upon failure)
and RECORD provides visual
indication of RECORD Mode. -Three other LED I S ,
a
moving-bar LED and two arrow LED'S shall be located on
the front o,f the transport drawer to indicate tape motion
and direction.
'
,
,
4.23
Each tape transport should incorporate a memory feature
which shall return the transport
to
the
previously
selected mode following a total loss of power.
(1. e.
return to RECORD mode if in RECORD mode prior to the
expiration of the UPS battery.)
4.24
Multiple transport .systems shall perform an automatic
transfer of the transports in RECORD mode on a daily
basis at any selectable time. Manual override of this
feature shall be possible~
4.25
Each tape transport ,drawer module shall not require more
than eleven inches of vertical cabinet rnoun~ing space.
,000357
4.26
Each transport module shall contain all electronics
necessary for aUdio recording, time
code
recording,
playback. and safe scan monitoring functions for
up to 60 channels provided by its own dedicated
microprocessor.
4.2·7
Each transport module drawer shall be equipped with an
electronic lock that prevents access without entering a
password in the central control CRT. The t ran s po r t s
shall have, the capability of being opened with a key in
the event an extended power failure prevents operation
of the electronic lock.
4.28
The time code generator within the transport modules
dedicated microprocessor shall write a code on the tape
that
contains
a
3
digit
programmable
machine
identification number, system deck number, year, month,
day l hour, minute and second.
This time code will be
synchronized to the master,clock in the central CRT
control.
This time code will be multiplexed and allow
-full use of this channel for aUdio recording.
All
channels must meet the published overall specifications.·
4.29
Should master synchronization b~ lost, the time will be
kept from an internal crystal oscillator within each
transport and automatically resync to master time when
it-resumes.
4.30
The automatic safe -scan within each transport. module
shall monitor the 80Hz guard tone and the time code
channel. The safe scan shall take no more than 1 . 8 7 5
seconds to check 60 channels . The safe scan will alert
the central control CRT if any failure is detected.
_4.31
From the central control CRT the safe scan fail time
. shall be programmable from 8 to 60 seconds.
4.32
From the central control CRT , i t shall 'be possible to
program the automatic. safe scan to skip unused channels.
4.33
In addition
to
safe
scan the transport module
microprocessor shall monitor its own bias level, tape
speed, spindle r~tation and alert the central control CRT
if. any malfunction is detected.
4.34
It shall be possible to field eXpand any transport to a
larger channel configuration within the transport tape
sizes.
-
4.35
The transport shall be designed for horizontal mount in
a sliding drawer or vertical mount in a 19# rack.
000358
4.36
The quoted system new transport design' shall not obsolete
the usage of tapes recorded on the previous model and
shall play those tapes back and provide time/date search
capability .
4.37
. The individual transports shall contain a program that
automatically slows the reels at the beginning of tape
or end of tape in the fast forward and fast rewind
operations providing gentle tape handling.
. 4.38
It shall. be. possible to select VOX operation by
transport, allowing one or more transports·
to
run
continuo~sly or one or mor~ transports to run VOX.
4.39
It shall be possible to proviae two tape transports
recording active cOllmlunications backed up by one tape
transport providing 50% redundancy.
This two over one
configuration shall be completely standard and require
no mechanical or software modifications.
4.40
It shall be possible to provide three tape transpo~ts
recording active communications backed up by one. tape
transport providing 33% redundancy. This three over one
configuration shall be completely standard and require
no mechanical or software modifications.
.
4.41
It shall be possible in either the two over one or three _
over one configuration to run the stand by deck in
parallel with any of the on line transports, providing
a #scratch pad ll operation.
When this function is
selected, any failure on a primary record transport will
cause the scratch pad operation to cease and transfer
failed transport recording to the
stand . by deck
automatically.
5.00
ELECTRICAL
5.01
commercial power requirements shall be 95-125 volts A/C
60Hz or a dedicated DC power source.
5.02
The entire system shall be designed to minimize heat
dissipation. Maximum power consumption shall be less
than 625 watts/7.S amps (850 watts peak).
5.03
The self contained power supply shall convert the main
Ale voltage to 18 volt DIe voltage and provide this to
all components of the system.
'U·, -( """\
On·n·
i "
U
.
t''\ l"" (-\
.~
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5.04
The power supply module shall include an internal 18 volt
sealed lead acid battery that will provide all operating
voltages to provide full operation of an entire system
for at least 10 minutes upon failure of the commercial
power source. This UPS system shall be an integral
design feature of the system and any commercially
purchased and added external computer type UPS systems
are not acceptable. Please state if UPS quoted is part
of the internal design architecture or a separate,
purchased accessory provi¢l.ing a battery converting to Alc
to run the system when main Ale ,failure occurs.
5.05
There shall be space' within the power supply module to
provide an optional fully duplicated DIC power supply.
This optional ~econd power supply 'will remain in t h e
standby mode and come on line if any failure is det~cted
in the primary power supply.
.
5.06
The following indicators will be located on the front
panel of the power supply module.
1.
Primary power module 1
&
2 - O.K.
2. Backup module 1 & 2 - O.K.
3. Battery in use
4. Battery charging
Also located on this front panel is a key operated onloff
switch.
wpen the key is turned to the off position, the,internal
battery is disconnected and the entire system is turned
off.
5.07
The primary power supply shall provide DC fqr all'
operating transports.
Upon failure the secondary power
supply shall also provide DC power for all transports.
Any system quoted' providing back up power dedicated to
only one transport is unacceptable. Please describe back
up power engineering method and attach to response.
6 • 0'0 PHYSICAL
6.01
,All system elements shall be arranged for 19# rack
mounting and transports shall be mounted horizontally in
locking sliding drawers housed in a cabinet of the
following dimensions:
standard Cabinet 67# HExpanded Cabihet88 l1 H24# W24 11
D32" D
W,
6.02
The 67# standard cabinet shall be capable qf housing 2
transport modules, 1 amplifier module, 1 CRT central
controller module, 1 accessory module, 1 power sup ply
module,
Up
to
120
amplifiers
and
up
to
120
telephone/radio interface cards.
6.03
The 88# cabinet shall be capable of housing 4 transport
modules, 2' amplifier modules, 1 CRT central controller
module, 1 accessory module, 1 power supply module, 240
record . amplifiers and 240 telephone/radio interface
cards.
6.04
The weight of the full 67# cabinet shall not exceed 400 .
lbs~ and the. weight of the full 88" cabinet shall not
exceed 600 lbs.
6.05
Must provide a stable, rolling caster,. ULapproved base
assembly for easy movement but not tip over.
7.00 ENVIRONMENTAL SPECIFICATIONS
7.01
The storage
centigrade.
temperature
.
shall
be
-10
to
70
degrees
7.02
·The operating temperature shall be 5 degrees centigrade
to 32 degrees centigrade.
7.·03
The operating relative humidity shall not exceed 90% RH
non-condensing.
7.04
The average BTU I S generated by a fully operating recorder
reproducer shall not exceed 1000 BTU's per hour.
000361
8.00 OPTIONAL ITEMS
A FULL FUNCTION CRT REMOTE CONTROL WORK STATION shall ·be
provided.
This microprocessor driven unit will permit
full control of the master recorder
from
a
remote
location. The CRT screen must show status of this system
as a whole and each transport up to four independently.
All record search and playback
operations
shall
be
directed with state of the art multifunction controls,
volume control speaker, headset jack and manual control
strip identical to the master recorder must be on this
panel. Space shall be available to house a full ~
cassette record panel to work in conjunction with the·
remote. Up to four of these work stations may be
installed with one system. Automatic privacy shall b e
provided when mUltiple work stations are used •
8.01
8.02
This
. A CASSETTE RERECORD PANEL shall be provided.
standard cassette, one channel recorder shall be built
onto a panel not to· exceed 1. 75# high and 19" wide. '!his
unit must install into the cabinet of eithe.r the master
recorder, portable reproducer or remote control console.
The cassette panel must contain these
controls,' vox
record, continuous record and eject .tape.
The panel
shall contain LED indicators for #Audio Recording", #VOX
Record" and continuous record.
This module shall also
contain a second track where the digital time
being
reproduced is converte~ to a voice time and recorded on
that track.
8.03
A complete BACK UP DC P0W:ER SUPPLY shall be provided that
switch on upon will automatically switch on upon any
.. failure of the primary unit. This power
supply
will
provide all of the .DC voltages needed to operate an
entire system of up to four transports.
The following
LED indicators shall be on the front of the power supply
module. Primary module 1 and 2 #OK", back up module 1
and 2 #OK", battery lin use" and battery charging.
8.04
An optional TELEPHONE-BEEPING UNIVERSAL INPUT coupler
shall be' 'available for each designated telephone line or'
work position to be recorded. The universal input shall
replace the standard non-beeping universal inputs that
are provided as standard with the system.
The beeper
universal inputs shall be FCC approved and provide a beep
every 15 seconds.
8.05
A REMOTE ALARM AND STATUS PANEL shall be provided which
will give audible and visual indications of any failure
condition at a remote location for up to four transports~
This panel shall be 19# rack mountable with an optional
desk top enclosure.
OOQ36:?
._---
--------------------------
--
_.-
-
--
8.06
AUDIO SIGNAL ACTIVE COMBINERS which electronically
combine two audio sources (i. e. duplex radio system) into
one aUdio input to the reoorder shall be provided. These
combiners
must
include
individual
input
control
adjustments and be part of the universal inputs.
8.07
SLAVE CLOCKS with bright LED displays and slaved to the
Series 9000 system master time cloCk shall be provided.
These clocks shall be rack mountable in 1.75# high slots
in a 19" rack or desk top mount~d or a MATRIX WALL c:r.o:x
version shall also be provided displaying hours, minutes
and seconds with a scrolling date/display every minute.
8.08
A REDUNDANT SET OF RECORD AMPLIFIERS shall be provided
that will automatically switch on should any malfunction
be detected in the primary record amplifiers. When,these
back up amplifiers are installed, along.. with a b a c k u p
power supply in a two transport system f 100% sy.stem
redundancy shall be possible with
out
effecting
individual transport operation or total system ~on.
Systems that fail an entire transport on amplifier or
power supply failure are unacceptable.
9.00 PORTABLE REPRODUCER/TRANSCRIBER
9.01
A SINGLE TRANSPORT PORTABLE REPRODUCER completely
compatible with the associated voice communication
recorder/reproducer shall be provided.
9.02
This system shall be designed to reproduce the tapes
recorded on the master recorder and provide a playback
display of the recorded time/date along with machine ID#.
information.
9.03
This reproducer shall include a CRT MONITOR that displays
a series of easy to read screens.
This monitor shall
have a membrane switch containing five soft keys,
a
dedicated #previous screen" key, n]l.meric keypad and a
soft membrane search strip associa~ed with it identical
to the master recorder.
.
..
9.04
The tape transport shall be of IDENTICAL design as the
'MASTER RECORDER but have no record or erase capability.
9.05
The following control buttons shall be ,provided on the
tape transport in addition to the CRT control switches
REWIND, FAST FORWARD, PLAY, STOP,
SPEED
CONTROL AND
AUTOMATIC BACKSPACE SELECTION.
9.06
The reproducer shall meet ~ll electronic/audio
electrical specifications of the master recorder.
and
,
OO(J363
9.07
The features AUTO-SEARCH, AUDIO-SEARCH, VARIABLE SPEED
SEARCH, ACTIVITY MONITOR, MULTIPLE CHANNEL PLAYBACK AND
AUTO RERECORD must be available on the playback system.
9.08
A VARIABLE SPEED CONTROL and ADJUSTABLE BACKSPACE ~
shall also be provided to facilitate transcription of
prerecorded tapes.
9.10
All equipment and features listed above shall be housed
in a portable carrying case,
with
dimensions
not
exceeding 40# in height, 24" in width and·24# in depth.
A plexiglas door shall be included that covers the entire
front of the case. Total weight should not exceed 90
lbs.
9.11
The system will also inclued a built-in cassette rerecord
panel with no modification to the cabinet.
9.12
The portable reproducer shall be fully compatible with
the tape of the same size and channel conf iguration
recorded on the vendors previous models. Auto search and
time/date display functions shall be fully operational.
_9.13
The portable reproducer shall include an empty tape reel,
foot control to -facilitate ease of transcription, as well
as high quality headphones.
10.00 SUPPLIES AND ACCESSORIES
10.01
Head demagnitizer and cleaning kits shall be provided.
10.02
Bulk tape erasers shall be provided.
10.03
Extra take up reels shall be provided.
10.04
Tape splicers shall be provided.
10.05
Reels of 3600 ft, 1 mil thick, low noise recording tape
shall be provided. Any tape with thickness less than one
mil or not specifically designed for slow speed v 0 ice
recordings is unacceptable.
10.06
Boxes of head cleaning pads made of material that does
not shed or contain any sol~tion not. recommended by the
manufacturer shall be provided.
1.0
An inmate telephone monitoring software package shall be provided. This
package shall" be capable of storing and indexing all SMDR (Station
Message Detail Recording) information generated by a PBX or TIP and
RING scanner.
.
1.1
This software must be completely operational
1.2
The vendor shall. guarantee support for the software described in this
specification for a period of not less than 5 years.
1.3
Support personnel e~ploved directlv by the software.vendor must
able
to respond within one working day in the event support is required.
1.4
The successful bidder shall provide a comprehensive
installation manual with the software package.
1.5
The successful bidder shall provide full installation of this software.
1.6
The vendor- shall provide on site' training and instruction for operators.
covering the complete software package. This training is to be performed
by direct employees of the software provider;
2.0
Down Loading (S:WIDR) Call Records
when installed.
After
installation and acceptance, the vendor shall guarantee it for a period of
one year and will provide any corrective upgrades or changes at. no charge
during such period.
be
operational
and
The software shall provide' for automatic down loading of the Call Records
(SMDR Data) without operator involvement at a preprogrammed' time.
The capabjlity to down load Call Records at any time shall be possible by
selecting the appropriate menu choice.
'.
3.0
Storaee of Call Records (S1YIDR Data)
of
The software shall be capable of maintaining an unlimited number
call
records (except .the physical limitations of the storage media i.e. hard disk
size) on line.
All call records must be stored on site and shan be available to the
operator on demand. Anv off premise stora2"e of Call Records is
unacceptable. Failure to meet this requirement is cause for bid rejection.
4.0
Archiving of Call Records (S1YIDR Data)
The software shall h.e capable of maintaining up to. one full year of Call
000365
ReCords (Subject only to hard disk size). The system management of these
archived Call Records shall be completely automatic and transparent.
4.1
The system operator shall onlY' need to set the initial parameters of the
number of months to archive (up to 12) and the number of days to
maintain on line (up to 90 days) and management shall be automatic.
4.2
Selection of archived months for on line use shall be accomplished from
a menu selection containing a pop up list of all months currently in archive.
Highlighting and selecting the desired month shall automatically load that
month into the on line program. Loading an archived month to on line
use shall not take more than 5 seconds.
5.0
Search and Retrieval of Call Records (SMDR Data)
It shall be possible to search and locate any specific Call Records from the
on line data base by any of the following search fields:
1.
2.
3.
4.
5.
6.
7.
Area Code
Phone Number
Date
Time of Call
Length of Call
Channel Location on Voice Logger
Booth . or Pay Phone Location
5.1
The search method shall be incremental. As ·each number is typed. into
search field the system shall instantaneously .locate that number and
each subsequent number, continuing this incremental search until the
number is typed in and located. The software must locate at or near
typing speed of the operator.
6.0
Case FlIes.
Case flles shall be available to store information obtained
investigations and SMDR Data.
the
for
full.
the
from call
6.1
The Location .File' shall hold specific information on the location of the
telephone number dialed. This information. shall be in the format of, name,
address and activity at· that telephone location.
There shall be the
capability to enter free. form notes relating to· this location. This rue, on<;:e
opened shall always be assigned to the location telephone number, so that.
when ever that location number is selected from the on line Call Records,
the file is automatically available.
6.2
The Call Record File shall store the information for a specific telephone
call. This file shall contain the area code. telephone number, inmate
making calL date. time. length of call and any other specifics regarding that
000366
specific telephone conversation. This call record file shall be pennanently
linked to the location file for all future searches. If a call record is heinl!
viewed. it shall be possible to view the linked location file with a single kel
stroke.
.
6.3 .
The Inmate File shall be available for each inmate in the facility. This file
shall contain ID number, name, aliases, affiliation, and free form notes for
general comments on that specific inmate. The software shall provide the
capability to link an inmate file to a specific call record file. While viewing
a call record file it shall be possible to. view the linked inmate file or
location file with a single key stroke.
7.0
Telephone Books
The software shall provide a· method to associate individual tel~p.hone
numbers with specific inmates, agencies or staff members.
7.1
The Inmate Telephone Book shall allow for all known telephone numbers
specific to each inmate to be stored along with a brief description of each
number.
7.1.1
The software shall allow any telephone number ·within arty inmates
telephone book to be selected for aut0IJ:1atic reporting. . This· report shall
notify the operator.. of every telephone call made to any selecterl telephone
number during the reponing .period. This report shall contain inmate ID
and name, number called. date. time, length of call, channel on the voice
logger and whether a case or location me has been opened on that call
record.
7.2
The Agencv Telephone Book shall allow for telephone numbers of specific
.interest to any outside agency to be stored along with a brief description
of each number.
.
7.2.1
. The software shall allow any telephone number within· .any agencies
telephone book to be flagged for reponing. When the agency report is run,
all numbers selected that .were called during . the report period shall be
.listed. Each agency repon shall be reponed separately.
7.3
'. The Staff Telephone Book shall allow for telephone numbers specific to
each staff number to be stored.
7.3.1
The software shall allow for automatic. repo'ning of any calls made to the
selecterl numbers from a monitored inmate telephone.
8.0
The software package shall contain the ability to generate reports. These
reports shall· be . either automatic. at a preprogrammed time or upon
demand. These reports shall be sent· to a printer, screen or to a disk file
if the printer· or screen are not secure. Automatic reports shall include
inmate. agency, and staff reports generated from the information stored. in
00036'7
the" telephone
as well.
books. These reports can be manually produced at any time
8.1
The Phone Summan Report shall provide a listing of all outside numbers
called and what inmates are calling a specific number. All case files
including location. call, and inmate must be available for viewing with one
key stroke if a call report is selected.
8.2
The Inmate Summary Report shall show all numbers called by a specific
inmate. All case files, including location, call and inmate must be available
for viewing with one key stroke if a call record is selected.
8.3
The Case Summary Report shall include all numbers called that" are under
investigation and .linked through the same case number. All case files
pertaining to a phone location shall be available with one key stroke."
Highlighting a specific call record in a case report and selecting it shall
display a complete case summary with inmate, call and location files shown
on .Q.gg screen.
9.0
For. site "installations involving under 100 monitored lines, minimum
computer
configuration
shall consist of: 32-bit 386 Microprocessor.
Clock Speed 33-l\1Hz with 64K Cache. 33-MHz 387 Coprocessor Supported.
6 Expansion Slots Available. 4MB Ram expandable to 16MB. l.44-MB 3
l/2-inch DiSkette Drive, 120,.MB Fixed Disk Drive. Internal Tape Drive
capable of entire Fi-xed Drive Back-up. 101 Key Board. 1 Paralle1l2 Serial
Ports.-14" VGA Color Monitor. FCC Class B Certified. 9600 baud MNP/5
& V.42bis data compression Modem. DOS 4.01 or 5.0. 500 Watt UPS.
Component Power Switching Svstem. Parallel Printer Switch with Buffer.
& Parallel Printer Cable.
9.1
For site installations involving over 100 monitored lines, minimum computer
configuration shall" consist of: 32-bit 486 Microprocessor. Clock
Speed 33·Yffiz with 128K Cache.
6 Expansion Slots Available. 12MB Ram
expandable to 100MB. l.44-MB 3 I12-inch Diskette Drive.
320-MB Fixed Disk
Drive. Internal Tape Drive capable of entire Fixed Disk Back-up. 101 Key
Board. 1 Paralle1l2 Serial Ports. 14" VGA Color Monitor. FCC Class B "Certified. 9600
baud
lVINP/5 & V,42 data compression Modem. DOS 4.01 or 5.0.700 Wa t t
UPS. Component Power Switching
System. Parallel Printer Switch with
Buffer. & Parallel Printer Cable.
000368
MINIMUM SYSTEM COMPONENTS
COMPONE~TS
LOGGER SYSTEM
.1t',I:I.
.
CBCC I MICC
TRce
·1·
1
1
1
1
1
1
1
1
365
365
365
1
1
50
50
50
.1
1
1
1
1
1
2
2
2
1
1
1
1
1
1
1
1
1
1
1
,
9605 DICTAPHONE LOGGER
9605 POWER SUPPLY
REMOTE CRTW/REC
S600 REPRODUCER W/REC
ARCHIVE TAPE SUPPLY
3ULK TAPE ERASER
5yr CLEANING PADS (bx)
TIP RING SCANNER
::lOLLCAT BUFFER (512k)
SHORT HAUL MODEMS
JIGrr GRABBERS
-iEADPHONES W/ACSRIES
:ALLWATCH ver 3.0
SYSTEM INSTALLATION
•ST YR MAINT CONTRACT
2ND YR MAINT CONTRACT
3RD YR MAINT CONTRACT
~TH YR MAINT CONTRACT
~H YR MAINT CONTRACT
I
wce
2
,.
2
2
,
1
730
,
1
100
2
.1
2
2
2
1
2
2
2
2'
2
2
,
1
1
1
1
I
i
I
1 I
1i
1
1
1
1
1
1
1
1
1
wccw
1
1
1
1
185
1
25
1
1
2
1
1
1
,
1
1
1
1
1
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2
2
WSR
1
1
1
1
365
1
50
1
4
1
730
1
100
2
1
2
2
2
1
2
2
2
2
2
2
1
2
1
1
1
1
1
1
1
TOTAL
9
9
11
7
3105
7
425
9
7
14
9
9
7
-~
,
1
9
9
9
9
9
9
COi'v[PUTER COMPONENTS (NORTHGATE)
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'lORTHGATE486/33, 340MB HD
'lORTHGATE 386/33, 200MB HD
SVGA COLOR MONn:OR
:MB EXPAN MEM (486 SYS)
.t.MB EXPAN MEM (386 SYS)
a.6OO BAUD INT MODEM
. 50MB tNT TAPE DRIVE
2ND YR MAINT (486 SYS)
2ND YR MAINT (386 SYS)
-:cANYWHERE HOST
'lORTON BACKUP
"OWER SWITCHING SYSTEM
SYSTEM UPS 1700wl
..
':'CCESS JOURNALS
':'DVISAULOCATION SIGNS
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1
1 I
1
I
WCCN/
1
1
1
1
1
1
1
1
1
1
1
1
,
1
1
1
1
1
1
1
,
I WSR
WSP
TOTAL
1
1
i
1
1
1
,
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
~I
7
2
5
7
7
2
5
7
7
7
7
)tfISC£LLANEOUS SYSTEM COMPONENTS
I
~NTENNA.MAST.COAX
:ASSEITE RECORDER
:ASSETIE TAPE SUPPLY
:ASSETIE LABEL SUPPLY
DIRECTORY (LOCAL)
::RECT LINE PH INSTALL
::RECT LINE (2YR BILLING)
"~ONEIMODEM swrrCH
==lEQ SCANNER
TRee
I
I
I
I
CBee: MIce
22
125
120
:
1
1
1
150
15~ I
1
1
1
i
!
I
;I
I
1
!
1 I
1
1
1
, I
TRce I WCC I wceWI
2
2
2
70
150
25
1
1
1
1
·1
1
150
300'
150
1
2
1
1
1
1
1
1
1
1
1
1
1
1
1
~I
I
,
wsp'
2
75
1
1
300
2
1
1
1
1
1
WSR I
2
70
1
1
150
1
1
~ I!
1
I
TOTAL
14
635
1
1350
I
;1
91
7
7
7
7
7
000369
'.VA ST. DEPT. OF
::~RECTIONS
TELE-MONrrORING EXPANSION
AS OF 15-Aug-9'
REPLY SHEET TO APPENDIX C
Each statement the company can 'compy with must be initialed by the company
representative authorized to negotiate this contract. For other responses requested, the
answer must be given and initialed. If the company cannot comply with a statement, an
"exception" must be noted. For each statement requiring ~dditional information, a
separate sheet must be provided and identified by the section, sub-section and number
assigned.
Can Comply
cannot comply
-1.01
1.02
1.03
1.04
1.05
,
1.06
1.07
1.08
1.0"9
1.10
1.11
1.12
000370
1.13
1.14
2.00 CENTRAL CONTROL CRT MODULE
2.01
2.02
2.03
2.04
2.05 .
2.06
2.07
. 2.09
2.10
2.11
2.12
. 2.13
2.14 .
. 000371.
'.
\
2.15
2.16
2.17
2.18
2.19
2.20
2.21
2.22
2.23
2.24
2.25
2.26
2.27
2.28
2.29
000372
______
•
••
•• _
•••
••
••
0_ _ - - -
_
-
-
~----
------
-
-
---
~
-
--
-
--~
----_
..
_---------
---- ------- ----- - --- ------ - ---------- -II
2.30
3.00 ELECTROCNICS/AUDIO
3.01
3.02
3.03
3.04
3.05
3.06
*3.07
*3.08
*3.09
*3.10
*3.11
3.12
3.13
0003·73
4.00 TAPE TRANSPORT MODULES
4.01
4.02
4.03
4.04
4.05
4.06
4.07
4.08
*
#Dictatpe" or approved equal must be used.
4.09
4.10
4.11
4.12,
4.13
4.14
*
#Dictaphone" or approved equal must be used.
000374.
4.31
4.32
4.33
4.34
4.35
4.36
4.37
4.38
4.39
4.40
4.41
5.00 ELECTRICAL
5.01
5.02
5.03
5.04
nUuUv
n n .<)l"'JI_Uc
5.05
5.0q
5.07
6.00 PHYSICAL
6.01
6.02
6.03
6.04
6.05
7.00 ENVIRONMENTAL SPECIFICATIONS
7.01
7.02
7.03
7.04
8.00 OPTIONAL ITEMS
8.01
8.02
0003?7
8.03
8.04
8.05
8.06
8.07
8.08
9.00 PORTABLE REPRODUCERrrRANSCRIBER
9.01
9.02
9.03
9.04
9.05
9.06
9.07
. 9.08
9.09
000378
9.10
9.11
9.12
9.13
10.00 SUPPLIES AND ACCESSORIES
10.01
10.02
10.03
10.04
10.05
I.
10.06
* PLEASE NOTE DIFFERENT NUMBERING SYSTEM!
. 1.0
.1.1 .
1.2
1.3
000379
1.4
1.5
1.6
2.1
Down Loading (SMDR) Call Records
3.0· .
Storage of Call Records (SMDR Data)
4.0
Archiving of Call Records (SMDR Data)
4.1
4.2
5.0
Search and Retrlevsl of Call Records (SMDR Data)
.!
1.
2.
3.
4.
5.
6.
7.
00038Q
--
-
---
-
--
--
-------
-
--.
-
--
--
- --
--
--
-
-
-
5.1
6.0
6.1
6.2
6.3
7.0
7.1
7.1.1
7.2
7.2.1
7.3
7.3.1
8.0
8.1
8,2
8.3
000381
9.0
9.1
\
ATTACHMENT A( 1)
CORRECTION CENTERS
CEDAR CREEK CORRECTIONS CENTER
Bordeaux' Road
P.O •. Box 37
Littlerock, WA 98556
CLALLAM BAY CORRECTIONS CENTER
Charlie Creek Road
He 63, Box 5000 .
Clallam Bay, WA 98326-9775
INDIAN RIDGE CORRECTIONS CENTER
19601 Nicks Road
Arlington, WA 98223-9515
LARCH CORRECTIONS CENTER
15314 N.E. Dole Valley Road
Yacolt, WA 98675-9531
MCNEIL ISLAND CORRECTIONS CENTER
1403 Commercial. street
P.O. Box 900, MS: WT~Q1
steilacoom, WA 98388-0900
OLYMPIC CORRECTIONS CENTER
. HC-80, Box 2500
Forks, WA 98331
PINE LODGE .CORRECTIONS CENTER'
#1 Pine street
P.O. Box C
Medical Lake, WA 99022
SPECIAL OFFENDER CENTER
16730 177th Avenue
P.O. Box 514
Monroe; WA 98272-0514
.TWIN RIVERS CORRECTIONS CENTER
16920 164th S.E.
P.O. Box 888, MS: NM-85
Monroe! WA 98272-0888
WASHINGTON CORRECTIONS CENTER
Highway 102, Dayton Airport Road
P.O. Box g'OO
Shelton, WA 98584
000383,'
WASHINGTON CORRECTIONS CENTER FOR WOMEN
9601 Bujacich Road N.W.
P.O. Box 17, MS: WP-04
Gig Harbor, WA 98335
WASHINGTON STATE PENITENTIARY
1313 N. 13th
P.O. Box 520
Walla Walla, WA 99362
WASHINGTON STATE REFORMATORY
16401 177th Avenue S.E.
P.O. Box 777, MS: NM-83
Monroe, WA 9827.2-0777
00038 /!
ATTACHMENT A(2)
CORRECTIONS. CENTERS
MONITORING/RECORDING EQUIPMENT
CLALLAM BAY CORRECTIONS CENTER
Charlie Creek Road
HC 63 , Box 5000
Clallam Bay, WA 98326-9775
MCNEIL ISLAND CORRECTIONS CENTER
1403 Commercial street
P.O. Box 900, MS:WT-01
steilacoom, WA
98338-0900
WASHINGTON CORRECTIONS CENTER
Highway 102, Dayton Airport Road
P.O. Box 900
Shelton, WA
98584
WASHINGTON CORRECTIONS CENTER FOR WOMEN
9601 Bujacich Road N.W.
P.o. Box 17, MS: W~-04
Gig Harbor, WA 98335
WASHINGT·ON STATE PENITENTIARY
1313 N. 13th
P.O.' Box 520
Wal~a
Walla, WA
993~2
WASHINGTON STATE REFORMATORY
16401 177thAvenue S.E.
P.O. Box 777, MS: NM-83
Monroe, WA 98272-0777
000385
ATTACHMENT A(3)
WORK/TRAINING RELEASE FACILITIES
BELLINGHAM WTR
1127 North Garden street
Bellingham, WA 98225
BISHOP LEWIS HOUSE WTR
703 - 8th Ave., MS: TB-08
Seattle, WA 98104
CLARK COUNTY WTR
700 West 13th street
P.O. Box 61447, MS: S-25
Vancouver, WA 98666
CORNELIUS HOUSE WTR
W. 1215 Mallon
Spokane, WA 99201
LONGVIEW WTR
1226 - 11th Ave.
P.o. Box 1216, MS: S-9
Longview, WA 98632
OLYMPIA WTR
1800 - 11th Southwest
P.O. Box 7689, MS: FN-61
Olympia, WA 98507
PIONEER WTR
220 - 11th Ave., MS:
Seattle, WA 98122
TB-10
PROGRESS HOUSE WTR
5601 - 6th Ave., MS:
Tacoma, WA 98406
WT-25
RAP/LINCOLN HOUSE WTR
3704 South Yakima, MS:
Tacoma, WA 98408
REYNOLDS WTR
410 - 4th Ave., MS:
Seattle, WA 98104·
WT-13
TB-09
YAKIMA/KITTITAS WTR
2011 South 64th Ave.
Yakima, WA 98903
000386
ATTACHMENT C
DEPARTMENT OF CORRECTIONS
EQUAL OPPORTUNITY ASSURANCES
A.
The Contractor hereby designates
(Name) .
(Title)
as ~he· person who has been charged with the responsibility
fer securing compliance with such contract provisions
pertaining to equal employment opportunity and reporting
prcgress in connection with the affirmative action to be
·undertaken herewith.
I
s.
.
The Contractor will ensure that equal opportunity of
employment results during the term of this Contract by
taKing a combination of, or all of the following affirma~ive
steps; to ensur.e that equal opportunity of employment will
result:
.
1.
Notify, in writing, organizations ~ha~ are active in
recruiting women, minorities, and other protected
groups of job positions available. A copy of the
notification will be forwarded to the Office of
Contracts and Regulations, Department of Corrections,
P.O. Box 9699, Olympia, Washington 98504.
Make specific and constan~ recruitment efforts with
organizations, schools, and/or training organizations
that are owned or operated by women or members of
minority groups. .
Make specific efforts to encourage present women,
minority, or employees of other. protected groups to
iecruit other applicants for available job openings.
Seek out and pegotiate with women or minority-owned
con~rac~ors to receive SUbcontract awards.
s.
Provide opportunities for advancement: ~f women,
minor i ties, or memoers of other pr.otect:ea groups
employed in proiect.
o.
Cooperate with oraanizations active 1n eaual
opporcuni ties, in - seeki:lg and hir ing s cafE.
I •
OR, in lieu of the above subsection 1-6, snaIl take the
followina soecific affirmative actions to ensure e~ual
opporcuni ties of employmept. ' (If this port ion is used,
the statement must be specific and need not include any
ot ~he above subsection 1-6.j
Page
!
c.
:=ntractor has given notice to his supervisors and other
employees and subcontractors of the terms of the Affirmative
~c~iGn to be undertaken.
(Agency/Contractor)
\Signa:~re
(Phone)
of Agency Direccor or
Boa:::: Chairman)
000388
I
'
ATTACHMENT C
DEPARTMENT OF CORRECTIONS
EQUAL OPPORTUNITY ASSURANCES
A.
The Contractor hereby designates
(Name)
(Title)
as the person who has been charged with the responsibility
for securing compliance with such contract provisions
pertaining to equal employment opportunity and reporting
progress in connection with th~ affirmative action to be
undertaken herewith.
B.
The Contractor will ensure that equal opportunity of
employment results.during the term of this Contract by
taking a combination of, or all of the following affirma~~ve
steps; 'to ensure that equal opportunity of employment will
result:
.
1.
Notify, in writing, organizations that are active in
recruiting women, minorities, and other protected
groups of job positions available. A copy of the
notification will be forwarded to the Office of
Contracts and Regulations, Department of Corrections,
P.O. Box 9699, Olympia ,Washington 98504.
2~
Make specific.and constant ~ecruitment efforts with
organizations, schools, a.nd/or· training organizations
t.hat .are owned or operated by women or members of
minority groups.
3.
Make specific efforts to encourage present women,
minority, or employees of other protected groups to
recruit other applicants for- available jOb openings.
4.
Seek out and negotiate with women or minority-owned
contractors to receive subcontract ·awards.
5.
Provide opportunities for advancement of women,
minorities, or members of other protected groups
employed in project.
6.
Cooperate with organizations active in equal
opportunities, in seeking and hiring staff.
7.
OR, in lieu of the above subsection 1-6, shall take che
following specific affirmative actions to ensure equal
opportunities of employment. (If this portion is used,
the statement must be specific and need not include any
of the above subsection 1-6.)
Page 1 of 2
000389
.....
':~ntractor has given r:otice to his supervisors and other
employees and subcontractors of the terms of the Affirmative
~c:i~n t~
!
be undertsken.
(Phone) .
Agency; Ccnt:r·ac::or )
:S~gna~~re
30ar:::
or Agency
~~recc~= -~
Chairman)
000390
- -- --.;.
~-
- - - - - - - - - - - - - -- - - - - - - - - - -
..
----~ -~--
--~--------~---------
-----
COMMUNICATIONS
RI=P RESPONSE
MONITORING/RECORDING EClUIPMENT PROPOSAL
No. CRFP 2562'
STATE OF WASHINGTON
DEPARTMENT OF CORRECTIONS
OCTOBER 1991
Presented by: .
PTI Communications
Peter Fang, Market and
Product Development Strategist
206·699-5991
.Executive Vice
Jon Erickson
esidentjGeneral Manager· ,Western Region
11/7/1991
Date
0003.91
-~----
---
-- -
--
~-
-------------------------_._-
---
-------- --- - - - - - - - - - - - - - -
-~..
STATE OF WASHINGTON
DEPARTMENT OF CORRECTIONS
OCTOBER 1991
RFP f1ESPONSE
NO. CRFP 2562
TABLE OF CONTENTS
Certificate of Training
. . Reference List
Annuat Report .
. Appendix C -- Reply·
000392
.
~
_.
.
-.
•.
.
=
.'
.
~
.
• Dictaphone.
A Pitney Bowes Company
CERTIFICATE OF TBAtNlliG DJCTApHONE CQRPOBATLON
. Dictaphone Corporation and its authorized employees, agents, and/or dealers Will be
totally responSible for both installation and the maintenance of the recording equIpment
as well as Inmate monitoring equipment for the duration of this RFP Contract. Only
authorlz.ed representatives of Dictaphone will respond to the ongoing service, training. and
installations for the State of Washington RFP. This maintenance· support will continue for
the 5 year duration of this contract. This will serve as our Certificate of Training in
response to the Washington RFP.
Gordon . Moore
Vice President
Communications Recording Systems OMsion
. Date:
...•
"'-
-
----#--IL-f---'+--
Corporate Seal
•
0'
. J'-
000393
.
"'"
.
-. '. .
• Dictaphone
Ve,itrac~
Series 9000
A Pi.tney Bowes Company
PRISON FACILITY REFERENCE LIST
Washington Department of Corrections
. Oregon Department of Corrections
Alaska Department of Corrections
All of the above locations have fUlly redundant. Series 9000 Hardware
with Call Watch Inmate Monitoring System Software.
000394
5
Pitney Bowes
Mona~ch Marking
Pitney
Shipping and
Systems
M~~~gernent Ser'i!ices
Wefghing Systems
Pitney Bowes Shipping and
Weighing Systems supplies
computer-based systewls,
scales, parcel registers and
software for logistics, traffic
management. shipping and
other logistics applications
for a global market. Pitney
Bowes Shipping and Weighing
Systems' products are sold
and servi~ed worldwide by
dedicated sales and service
force of carrier management
sales. specialists, customer
support representatives and
other general sales repre.
sentatives within Pitney
Bowes Mailing Systems.
a
Monarch Marking Systems
supplies bar code printers,
software and supplies for
merchandise marking,
tracking and control systems
for retailers and their ven.
dors, as well as bar code
data collection systems for
.all types of industries.
Operating worldwide with
more than 2,500 employees,
Monarch is a market leader
in the United States,
Canada and Mexico and 'has
solid positions in .Japan, the
United Kingdom, France
and Australia. Monarch's
products are manufactured
in the United States, the
United Kingdom, Singapore,
Mexico, Canada and
Australia and are sold in
over 75 eountries.
Bow~s
Pitney Bowes Management
Serviees is a nationwide
provider of custom·
designed, contract manage·
ment for all aspects of a.
customer's mailroom and
copy center, providing all
mail-related functions such
as produi:tion mailing, repro·
graphics, facsimile services
and office supplies. Pitney
Bowes Management
Services serves a wide
range of custa,mers-Iegal
and financial professionals,
service organizations,
retailers and manufacturers..
Pitney Bowes
Financial Services
With representation around
the globe, Pitney Bowes
Financial Services' compa·
nies provide lease financing
programs for customers
who acquire products of
Pitney Bowes' companies;
sales-aid leasing. for ven·
dors of non-competitive,
small·ticket equipment;
and other programs for a
variety of finaneing needs
for strong, credit-worthy
customers. The Financial
Services group consists of:
Pitney Bowes Credit
Corporation - U.S.
Colonial Pac~fic Leasing
Corporation - U.S.
Pitney Bowes of Canada
Ltd. - Leasing Division
Pitney Bowes Finance. PLC U.K.
Adrema Leasing
Corporation· Germany
Pitney Bowes Credit
Australia Limited
Pitney Bowes Finance S.A••
France
Pitney Bowes
Shipping and
Weighing Systems
Monarch Marking
Systems
Pitney Bowes
Management Services
000396
Pitney Bowes
Financial Services
-~
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-':'-~~~~~~~..2i~~~;;:"~:~~-=-':-
~~ ',~PitneY'BOwes"
>. Mailing Systems
'f,
t-
•
_-
Pitney ~~wes
Office Systems -~."
~ :,::~".,,<~>'
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•
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Pitney Bowes
'Iing Systems
Pitney Bowes
Facsimile Systems
Pitney Bowes
Copier Systems
Dictaphone
Pitney Bowes is the worldwide market leader in mail.
ing systems. Pit.ney Bowes
Mailing Systems markets a
broad line of mailing, ship.
ping and weighing systems
and services to businesses,
professionals and govern·
ment agencies. It has direct
sales and service forces of
more than 7,000 in 16 coun·
tries, and dealers and dis·
tributors in about 90 other
countries. Mailing and
shipping e~uipment and
systems for Pitney Bowes'
markets worldwide are
provided by the company's
engineering, manufacturing
and marketing operations in
the United States and the
United Kingdom.
Pitney Bowes Facsimile
Systems Is a leading supplier
of high.quality facsimile
equipment to large- and
medium·sized businesses
worldwide. In the United
States, Pitney Bowes is
the' only facsimile systems
supplier marketing solely
through Its own sales force.,
Customers are supported
through a diagnostic center
accessed through a toll free
number. Outside the U.S.,
Pitney Bowes Facsimile
Systems distributes products
through direct sales organi.
zations in key markets and
through dealers in other
markets worldwide.
Pitney Bowes Copier
Systems concentrates on
new, higher-margin equipment serving larger corpora·
tions and multi.unit installa· .
tions. Through a network of
more than 1,400 direct sales
and service representatives,
including' national account
sales people, Pitney Bowes'
copiers are marketed and
serviced in all major markets
in the United States. All
Pitney Bowes' copiers are
backed by the unmatched
Total PackageC!l copier sup.
port program which provides
a broad range of highly reli·
able equipment, a single
source for service and sup·
plies and financing alterna·
tives to meet individual
customer needs.
Dictaphone is the worldwide
leader in voice processing
systems. The company
manufactW'es and markets
small work group and central dictation and voice pro·
cesslng systems, communi.
cations recorders and
portable and desktop dicta·
tion units. Products are
marketed and serviced
worldwide by 1,700
direct sales and service
representatives.
~§i~:~~
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----
Pitney Bowes
Facsimile Systems
Pitney Bowes
Copier Systems
LETTER TO STOCKHOLDERS:
Facsimile Systems, Pitney Bowes
Copier Systems and Dictaphonewere linked together under a
single executive· officer.
I ended my letter last year by
describing the 1990s as an
Rexciting and challenging time
stock dividend. Effective with
the March 1991 payment, the
quarterly cash dividend increased
for Pitney Bowes."
1be first year of the decade,
13 percent to 34 cents per share.
We had increased the quarterly
1990, was an exciting year for
dividend to 30 cents per share
Pitney Bowes because we made
effective with the March 1990.
During the .year, we continued
to make changes in our copier
business. In the third quarter of
signifiCant progress on many
payment.
1990, we announc;ed that the
fronts: we expanded our horizons by exploring new markets,
we made investments in products and services. and introduced
new products, and we reconfirmed our commitment to our
customers in the strongest
possible way.
Our sound fmancial position
is reflected by t!:ie reaffirmation
company would no longer
remanufacture used copier
equipment and would concen-
The year was a challenging
one for Pitney Bowes because
we had to make some tough
decisions. Such decisions are·
never easy, and they become
more difficult when they have to
be made in an unpredictable
econ01;ny.
We believe that the steps we
took in 1990 have enhanced the
. overall value of Pitney Bowes
for the long-term benefit of our
stockholders, our customers and
our employees.·
in 1990 of our high quality, 10ngterm debt rating, by both Moody's trate on new, higher-margin
copiers. This resulted in aggre(Aa3) and Standard and Poor's
gate one-time charge against
(AA). We regard these ratings as
a confirmation of our long-term .1990 third-quarter, pretax earn-
an
financial strength which will
provide an excellent foundation
for our continuing growth.
Among the major steps taken
in 1990 was the strategic realignment of several businesses into
three new business units for
sharper marketing focus and
improved produc~ivity. Each of
the new business units-Pitney
Bowes Mailing Systems, Pitney
Bowes Office Systems, and
Pitney Bowes Logistics Systems
and Business Services-has
worldwide: market scope and
responsibility. Our fourth busi-
ings of $86.5 million, or 65 cents
per share after tax. We believe
these actions will have a positive .
impact on the company's competitive position and profitability.
In 1990, we continued to
strengthen our international
operations. Changes made in
our Mailing Systems unit in
Germany are yielding resul~s,
and we took steps to bring about
improvements in our Australian
operation. Pitney Bowes
Financial Services further devel- .
oped its operations in France
Pitney Bowes' 1990 revenue
of $3.2 billion represented an. 11
ness unit, Pitney Bowes Financial
and Australia. We also formed a
joint venture in Taiwan to better
percent increase over the previ-
Services, provides lease financing
develop the growth opportuni-
to customers of Pitney Bowes'
ties in
businesses as well as other
financial services for the com-
In 1990, we continued to
make research and development
mercial and industrial markets.
investments consistent.with our
As part of the 1990 business
realignment, our office systems
long-term growth objectives.
businesses-Pitney Bowes
spending in 1990 increased 25·
ous year. Net inco~e was
$213.3 mHlion, or $2.68 per
share, and return on stock. holders' equity for the year was .
13.4 percent.·
For the ninth consecutive
year, we increased the common
2
~he
Asia PacifiC region.
Research and development
0003.9,:8
percent over 1989, bringing our
+otal investment over the past
(hree years to more than a quarter of a billion dollars" This
investment has resulted in
numerous product introductions
comp~ny wide,
and we plan
accelerated product introductions
during the 1991-1993 time frame.
As further evidence ofour .
commitment to technological
leadership, we completed a new
Technology Center which was
dedicated dUring the year.
In addition, 1990 marked the
first full year of the Customer
Satisfaction Guarant~eSM, Pitney
well, they will continue to do
so as we move through the
decade.
It was a year in which our
employees made a conscious
effort to upgrade their skills and
The strength of Pitney Bowes
lies in its people-people who
have the skills and dedication to
education. Highly motivated
and self-directed, they are .
The 1990s will continue to
be an exciting and challenging
becoming even more productive
time. Pitney Bowes, a strong
company, is more than ready to
meet those challenges. And we
make certain that Pitney Bowes'
customers receive the best products and services worldwide.
in a technological environment
that provides the capability to
meet customer needs.
It was a year in which we
worked even harder at building
a culture that values diversity
and develops relationships.
. will work throughout the 19905
to make certain that Pitney
Bowes enters the year 2000 as
an even stronger and an even
more competitive company.
Bowes' pledge to meet customer
expectations. As part of our
~fforts to
build on this special
strength, we also established the
post of Corporate Customer
Advocate to. assist in the implementation of our heightened
customer focus. .
We publicly reinforced our
customer satisfaction philosophy
by la,unching an advertising
campaign featuring customer
testimonials. OUf commitment
to customer satisfaction is also
reflected in this Annual Report.
The year also brought other
changes--changes that made
Pitney Bowes an even stronger
company.
It was a year in which we
And it was a year in which
we reaffirmed our commitment
."?ok a good hard look at our
to"the communities where we
operate, a tradition for which
'values-and we discovered that
they have not only served us
Pitney Bowes has been nationally .
recognized.
Sincerely,
~J."a-George B. Harvey
Chairman and President
February 11, 1991
300039~)
CUSTOMER
SATISFACTION:
THE
NATIONAL
PARK SERVICE
The National Park Service
needed more accurate
accounting and better cost
management of a mail system with almost 400 locations nationwide. Pitney
Bowes had the answer.
The Official Mail Reporting
Systerp. (OMRS) with, the
Postage By Phonetl> meter
resetting system was
designed to make it easier
and more efficient specifically for government agencies to manage their postal
budgets. With the Postage '
By Phone system, the Park
Service can centrally control
quarterly postal expenditures and allocations at each
of its almost 400 locations.
,Because Pitn~y Bowes
created one master Park
Service account, the Park
Service receives one invoice
each quarter rather than,
hundreds of invoices covering all its locations. With
the Pitney Bowes master
maintenance agreement,
each location can call for
service when needed-and
the Park Service can track
these costs with one invoice
each quarter. With OMRS '
or its commercial counterpart, the Postage By Phone
system, every mail system,
regardless of size or complexity, can be managed
conveniently and efficiently.
4
Brian Grogan ofthe Yosemite Association and tourists Aaron and Hann,a~,sa4vqgt;...
OOU UU
CUSTOMER
. SATISFACTION:
ROVER
GROUP PLC
Rover Group pIc had a
problem. Pitney Bowes'
solution was perfectLetter-Perfect™. .Rover
Group needed a way to
regularly send Suggestion
Scheme'forms to 40,000
employees. Since the
purpose of the Suggestion
Scheme is to solicit ideas
for cost savings and productivity, the solution had to be
cost-effective and productive.
Pitney Bowes suggested the .
Letter-Perfect folder/inserter.
The compact, efficient
Letter-Perfect is an affordable
solution to the time-consuming, labor-intensive job
of regularly folding and
inserting 40,000 documents.
Described as "user friendly"
by the Rover staff, the
Letter-Perfect requires minimal operator supervision.
. The :Pitney Bowes Letter:Perfect is compatible with
the paper handling goals of
businesses like the Rover
G~oup, where efficiency
and cost-effectiveness are
high. priorities.
6
Paul Luland, Assembly Operator, Rover Group pic
000402
CUSTOMER
SATISFACTION:
'GALACAR
& CO.
When Fred Galacar
moved his business from
San Francisco to Essex,
'Massachusetts, Pitney
Bowes' coast-to-coast sales
and service network made
certain that Fred's critical
mailing operation never
missed a beat. Because
Fred relies on mail for a
large percentag~ of his .
documentary fabrics and
wall coverings business,
any loss of mail operations
means a loss of business.
When he arrived in
..._- . -- - .. __ .. - -.- .... --.-.,- .his
._.. - ...
native New England, he
called Pitney Bowes, and
his EagieThI Professional
Mailing System was up and
running immediately. As he
describes it, "It was nice to
know that my service c0t:1d
continue-all I had to do
was pick up the phone and
Pitney Bowes took care of
the rest." For Fred Galacar,
it was business as usua1from coast to coast.
"
Fred Galacar, President, Galacar & Co,
7·
.
.
.000403
8
000404
CUSTOMER
SATISFACTION:
WARWICK
POLICE
DEPARTMENT
When the Warwick, Rhode
Island Police Department
wanted their officers spending more time out on the
beat and less time at their
desks, they turned to
Dictaphone, a Pitney Bowes
company_ With the installation of Dictaphone's Digital
ExpressT.\1 System at Warwick
Police headquarters, police
officers out on patrol no
longer have to return to
headquarters to' sit at their
desks and write reports.
Instead, they pick up the
phone, access the system,
and dictate their reports,
which are immediately
available for transcription.
In Warwick, the 73-percent
reduction in report-prepa~
tion time can now be
devoted to patrolling this
coastline Rhode Island
community. When professionals such as the Warwick
police, or the many physicia~s in hospitals using the
Digital Express System, are
freed of clerical duties, the
people they serve are the
beneficiaries.
Officer David Pen"'i, Wanuick Police Depa1tment, Wanuick, Rl
®00405
CUSTOMER
SATISFACTION:
CONOCO INC.
When Conoco replaced a
nationwide network of 200
fa.csimile machines in early
1990, they called Pitney
Bowes, the only facsimile
systems supplier marketing
solely through its own sales
force in the United States.
Once the decision was
made, time was of the
essence, so Pitney Bowes
put together' a nationwide
team which installed 237
machines at Conoco locations from' Alaska to Florida
within 15 days. At each
step in the two-week
process, Pitney Bowes' staff
worked with Conoco's staff
to guarantee that all machines
were up and running on
time. Was Conoco satisfied
with the s~rvice they
received? By October 1990,
Conoco had over 500 of
Pitney Bowes' facsimile
, machines in operation.
What better evidence of
customer satisfaction?
10
. Frances Coonrod, Assistant Communications Coordinator, CanoeD Inc.
000406
CUSTOMER
SATISFACTION:
INSTITUTE OF
INTERNATIONAl
EDUCATION'
Many times the best stories
about customer satisfaction
are not so remarkable.
Rather, .they are stories of
stable, continuing relationships that develop over a
period of time. Suc~ is the
relationship between the
Institute of International
Education (lIE) and Pitney'
Bowes. HE, the largest U.S.
higher educational exchange
agency, builds international
understanding through .
educational exchanges that
reach nearly all the world's
nations. liE began using
Pitney Bowes' copiers in
1986. Today their Pitney
Bowes' representative stiil
makes regular calls at lIE,
across from the United
~ations headquarters 'in
New York City. When he
visits, he sits down with the
HE staff and checks supplie::
to ensure adequate inventory
answers questioris about
the equipment and, if
necessary, even gives a
quick refresher lesson to
the operators. When you
think about it, it's not so
-remarkable that relationship'
like this are the bedrock .of
Pitney Bowes' customer
satisfa<;tion.
Richard M. Krasno, President, Institute afInternational Education
CUSTOMER
SATISFACTION:
BANK OF
BOSTON
American business is getting
back to basics, concentrating on what it does best.
So, when Bank of Boston
decided to improve mail
service for both their customers and their employees,
they selected Pitney Bowes
Management Services
(PBMS) to manage their
mailroom. High on their
list of criteria was tl;l.e needfor an outside service with
the flexibility to meet Bank
needs within'the Bank'
environment. According to
Mary Lynn Kiley, Director,
Employee Services, "We
realized we could not provide the level of service that
PBMS could provide, given
their expertise in mailing
and maiIroom technology."
PBMS efficiently manages
the 10 million pieces oEmail
which flow through the mailr(}om annually, makes
certain that all outgoing
mailings take full advantage
of postal discounts, and
provides reprographics,
messenger and equipment
repair service. Bank of
Boston knows banking. It
seems they also know how
to get the most efficient mail
operation-Pitney Bowes
Management Services.
12
Mary Lynn Kiley, Director, Employee Services, Bank ofBoston, and
Robert A. Carr, Jr., Security Guard
nnu0/lo·g
U
v .... \.'
.
.;:"
CUSTOMER
SATISFACTION:
.BIRKA
Monarch Marking Systems
has built a reputation for
meeting retailers' inventory
and tracking needs with
expert, flexible solutions.
Monarch's flexibility came
in especially handy when
they received a request from
Dr. Bjorn Ambrosiani, the
archaeologist in charge of
the privately sponsored
.excavation project at the
Viking village of Birka,
30 kilometers west of
Stockholm, Sweden. Birka
is providing' archaeological
information unparalleled anywhere in Scandinavia, and its
volume and significance
demanded that a reliable
tracking and inventory
method be put in place.
To solve this problem,.
Monarch and the archaeologists worked together
to develop a system using
Monarch all-weather bar
code labels to track
excavated articles from
the site td the museum in
Stockholm. .Puttin~ this
system in. place proved once
again that no matter what
the customer's needs or
circumstances, Monarch
Marking Systems can
prOVide the right kind of
tracking system.
14
Solveig Brunstedt, Antiquarian
·Ur n4
'LI •• '10
,;;.
·0·
CUSTOMER
SATISFACTION:
adidas®U.S.A~
When adidas U.S.A. consolidated 17 warehouses into
one, Pitney Bowes stepped
up to help them. The consolidation of the warehouses
from across the United
States into one central
distribution center in South
Carolina required a complete
reevaluation of shipping
needs because of the variety
of equipment a1: the differem
locations. Pitney Bowes
worked with adidas to provide the kind of shipping
equipment needed for a
state-of-the-art operation and
matched parcel volume ,and
carrier needs to the equipment best suited to adidas'
needs and budgets. In
addition, Pitney Bowes'
flexible leasing plan give.s
adidas several options to
help ensure that their .
shipping equipment stays
current with their
shipping needs.
Cathy Wilkens, adidas employee .
CUSTOMER
SATISFACTION:
UNICARE
HEAlTH
FACILITIES
When Unicare Health
Facilities required a vl;:ndor
who shared its commitment
to consumer. satisfaction,
Pitney Bowes was the
choice. Pitney Bowes
Credit Corporation (PBCC)
serves 149 Unicare facilities
.in 14 states with leased
equipment for all paperwork-related needs-mailing,
faxing, copying, Pitney
Bowes consolidated all .
equipment under one lease,
which fit perfectly with
Unicare's strong, centralized
purchasing system, However,
to meet Unicare's special
accounting needs, equipment is itemized by center
for cost control, accurate
expense reporting and to
satisfy government reporting
requirements. As Unicare
grows, new equipment can
be added to the existing
.lease. PBCC's commitment
to Unicare is indicative of its
commitment to the more
than a quarter of a million
Pitney Bowes' customers
who have chosen Pitney
Bowes' leasing.
16
Resident Alma Christensen with ChavonneJoyce, an employee of Unicare.
000412
17
oUn n A '~3'
J
U"j;},-
Year in Review·
BUSINESS EQUIPMENT
. Pitney Bowes' business equipment b~sinesses include
Pitney Bowes Mailing SysteJ.?S and Pitney ~0v.r.es
Office Systems, as well as PItney Bowes ShIppmg and
Weighing Systems. Pitney Bowes Mailing Systems consists of the company's worldwide mailing business·
operations. Pitney. B?wes Office Systems includes .
Pitney Bowes Facslml1e Systems, P~tney Bowe~ CopIer
Systems in the United St~tes and DIctaphone.
.
In 1990, business eqUIpment revenue was $2.3 billion and accounted for 72 percent of corporate revenue.
Pitney Bowes Mailing Systems.
Pitney Bowes Mailing Systems' mission is to remain the
supplier of choice for mailing solutions worldwide.
Pitney Bowes Mailing Systems, the company's largest
business group, manufactures and markets postage
meters and mailing systems and is responsible for selling shipping and weighing products and systems
worldwide. In the'United States in 1990, Pitney Bowes
Mailing.Systems experienced excellent growth.
In 1990, for financial reporting purposes, Pitney
Bowes Mailing Systems' revenue, which includes: f~c
simile and shipping systems revenue, was $1.7 billion
and accounted for 53 percent of corporate revenue.
As the worldwide leader in mailing equipment and
systems, Pitney Bowes Mailing Systems focuses on
technology to develop products and systems which
provide faster, more reliable delivery, greater productivity and lower post~ge costs.. Key target n:arkets f~r
Pitney Bowes Mailing Systems are small busmess mailers, mailrooms and production mailers worldwide.
Direct sales and service forces of over 7,000 market
a broad line of mailing, shipping and weighing systems nationwide. Pitney Bowes Mailing Systems'
largest international markets are Canada and the U.K.,
with the Asia Pacific region offering good growth .
potential as mailing trends emerge there.
.
In 1990, Pitney Bowes Mailing Systems contmued
to strengthen its market leadership with a series of
carefully planned actions on many fronts.
. Internationally, Pitney Bowes Mailing Systems
made good progress in improving perfo~ance in il?
German operation) took steps to improve its Austrahan
operations, and formed a joint venture in Taiwan to
better develop the growth opportunities there. Pitney
Bowes ·Mailing Systems will be looking not only to this
operation but to its other operations in the Asia Pacific
region to further develop the potential of these markets.
Product introductions in 1990 included the very
popular E200 Eagle'; the 3280 Letter-Perfect'"
desktop folder/inserter in th.e U.S., PostEdge'" OCR bar
coding system and Premier Postage By Phone'" meter
resetting system.
The popularity of the Eagle'" Professional Mailjng .
System for small. business mailers contrib'-;l~ed to
growth i10 1990; It spurred the sales of maIling
machines and systems meters over stand-alone
meters. The 3280 Letter-Perfect, which was originally
introduced in Europe in 1989 where it did exceptionally well, is targeted at offices where repetitive
mailings have been historically inserted manually.
PostEdge OCR bar coding systems, that scan the ZIP
code and spray a postnet bar code on the mail ~iece,
enable-mailers to obtain the bar code postage dIScount from the USPS.
All new meters are being developed with Postage ,
By Phone'" meter resetting, one of Pitney Bowes'. superior innovations which enables customers to aV01d
.
trips to the post office to obtain pos~ge. This convenience is now offered in seven countnes arou!J.d the
world with plans to introduce it in many more in the
future. Premier Postage By Phone offers U.S. GUStamers an 800 number, postal information hotline,
unlimited resets and spedal usage reports.
These new mailing products and services are
backed by the strongest guarant~e in the mark:tpla~e,
Pitney Bowes Customer SatisfactiOn Guarantee WhICh
was unveiled in January 1990..
Pitney Bowes Mailing Systems' manufacturing .
operations continued to ~valuate technolo~, ~edeslgning product and productlon processes, retrammg
.
employees and establishing a flexible, self-directed
workforce.
.
In 1990; Pitney Bowes Mailing Systems continued
product development on its advanced products for
the entire range of mailers. These products, to be
introduced in the early nineties, respond to mailers'
demands for greater productivity and improv~d
efficiency and their need to take advantage or postal
dllicounts.
_
As post offices worldwide move toward ~ostal
automation, Pitney Bowes Mailing Syst~ms WIll. be
providing softw4re, hardware and servIce solutIons to
mailers of all sizes around the globe.
(-":
Pitney Bowes Office Systems
Pitney BOive$ Facsimile Systems
Pitney Bowes Facsimile Systems is a lead~ng s~pplier
of facsimile equipment to large- and med1Um-sI~~d
businesses worldwide. It will maintain this posltlon by
continuing to integrate product, sales, service and support to its competitive advantage.
Pitney Bowes Facsimile Systems' growth was somewhat slower overall in 1990 than in 1989 because of
low-end market saturation and price declines.
-000414
18
.... '
.
Capitalizing on its nationwide direct sales and
force in the United States, Pitney Bowes
_acsimile Systems serves the multi-unit needs of large
companies and other businesses with wide geographical coverage. Outside the U.S., the company markets
through direct sales organizations and dealers.
. In 1990, businesses increasingly demanded plainpaper units to meet their growing fax needs. This
trend will increase steadily in the next few years and
Pitney Bowes Facsimile Systems, with its full range of
sophisticated plain-paper units, will be uniquely positioned to meet this market demand.
In 1990, product introductions included the Model
9250 laser plain-paper facsimile and the Model 9100
plain-paper facsimile with ink jet printing. With its
sophisticated features and mid-range .price tag, the
9100 offe~s an affordable solution for many customer
applications.
Pitney Bowes Facsimile Systems' customers are
supported with superior service which includes remote
diagnostics and repair accessible in all direct sales
areas through nationwide toll free numbers.
Pitney Bowes Facsimile Systems will remain in the
forefront of the facsimile marketplace by aggressively
leveraging its strong position with major customers,
meeting. customer demand for new applications and
<"iroviding the highest level of sales and support service,
~rvice
Pitney Bowes Copier Systems
In 1990, revenue from Pitney Bowes' total copier business was $289.5 million and accounted for 9 percent of
total corporate revenue.
In the United States; Pitney Bowes Copier Sy~tems'
objective is to become a leading supplier of high
quality copiers, including service and supplies, to the
medium and. high-end market segments. Its marketing
strategy is directed at serving large corporations and
. multi-unit installations.
Having established a dedicated copier division
in 1989, Pitney Bowes continued to make major
changes in its copier business in 1990. The company
believes that the way to achieve profitable growth in
this business is. by concentrating on new, higher-margin copiers, not remanufactured equipment. Pitney
Bowes Copier Systems' strategy is to target higheryielding metropolitan areas and national accounts.
As a result of these changes, the decision was made
to no longer reman~facture used copier equipment,
and the company thus adjusted the estimated useful
life of copiers from five years to three years. The
company also established a reserve for the disposal
. . f copiers which previously would have been
emanufactured and for facility dosing costs.
These decisions hflve already had a favorable
impact, based on fourth-quarter performance.
. With the strength and scope of its nationwide sales
and service force in the U.S., Pitney Bowes Copier
Systems can deliver the equipment, service and supplies that will make it one of the most competitive in
the marketplace.
Dictaphone
Dictaphone, the worldwide leader in voice processing
systems, will maintain its market leadership through
innovative product development and systems marketing
expertise: The co~pany manufactures and markets
small work group and central dictation and voice processing systems, communications recorders, and
portable and desktop dictation. products.
In 1990, Dictaphone's revenue of $298.1 million
accounted for 10 percent of corporate revenue. For the
first time, dictation systems products accounted for the
majority of U.S. revenue in 1990. The most successful
of these products include Digital Express" 7000 and
Digital Express" 3000,
. Dictaphone participates not only in the traditional
dictation Iilllrket, estimated at approximately $300 million in the U.S. and $600 million worldwide, but is
expanding into voice processing worldwide.
Dictaph~)fie operates in almost 70 countries and
expects to enlarge its market position worldwide.
Over the past five years, Dictaphone has made a
dramatic transition from analog to digital recording
technology in its product lines. The high reliability
and increased functionality available with digital tech- _
nology is reflected in the strong market acceptance of
the Digital Express product family.
Major product introductions during the year
included three of the smallest digital voice processing
products in the world: ExpressTalk'", StraightTa1k~,
and the 6600 Digital On-Line Recorder. Extremely
, powerful, these systems are compact enough to fit
on a desktop.
The conversion to digital technology· is making it
possible to expand product functionality to include
voice response and voice recognition. In 1990, .
Dictaphone introduced InfoTalk'", which can provide
callers with information on topics they select without
operator assistance. Also introduced was the VoiceEM
system for medical reporting in emergency rooms.
Both VoiceEM and VoiceRAD (introduced in 1988 and
. designed for radiologists) are important forerunner
voice recognition products for Dictaphone.
In 1991, Dictaphone will continue to provide customers with systems solutions employing the latest
advances in technologies.
0004J5
"
Pitney Sow~s Logistics Systems
and Susiness Services
Pitney Bowes Shipping and Weighing Systems
Pitney Bowes Shipping and Weighing Systems will
achieve worldwide leadership in market share and
profitability through the development, sourcin~ a~d
marketing of quality solutions for selected lOgIStICS
applications.
Pimey,Bowes Shipping and Weighing Sys~em~ provides scales, carrier management or parcel shlppmg
systems, and traffic management systems and software
for the logistics market.
In 1990, Pitney Bowes Shipping and Weighing
Systems became a part of Pitney Bowes Logistics .
Systems and Business Services, ~ move that reC?g~1Zes
the natural synergies between PItney Bow~s Shtppmg,
and Weighing Systems' and Monarch Marking Systems
capabilities in the logistics market.
Key markets for shipping and weighing products are
manufacturers and distributors looking for overall transportation cost-management solutions. }Vith over ~e
million manufactUrers/wholesalers/retailers worldWIde
spending billions on transportation costs, there is great
opportunity for automation and informa~ion integra~on
of shipping and receiving operations. WIth acceleratmg
customer sophistication in the use of technology to satisfy logistics-application needs, these markets are ~~pe
riencing continued pressure for improved produetlVlty
and cost management of logistics Junctions. Pimey
Bowes Shipping and Weighing Systems is using its
know-how and technology to respond to these trends.
Product introductions in 1990 included several phases
of enhancements to the STAR'" family of manifest products to support the expanding application needs of '
carriers and customers, The introduction of and the
enhancements to the E900 International Shipping
System proved to be 'successful in developing markets,
in Cartada, the United Kingdom, Japan and Germany.
, With the 1990 acquisition of VOCAM, which
designs and manufactures logistics management software, Pitney Bowes significantly expanded.its ~apabi1i
ties in a variety of traffic management apphcations.,
BUSINESS SUPPLIES AND SERVICES
For financial reporting purposes, Monarch M~king
Systems and Pitney Bowes Management ServIces comprise the business supplies and services se~ment of the
company. Monarch Marking Systems proVIdes mer,chandise price marking, identification and tracking systems for retailers and logistics support systems through
bar code tracking for all types of businesses. 'Pitney
Bowes Management Services furnishes on-site facilities
management of mailrooms, reprographics and related
functions.
In 1990, business supplies and services revenues of
$364.8 million accounted for 11 percent of total
corporate revenue.
Monarch Marking Systems
The leading supplier of merchandise price mark~g and
identification systems for retailers, Monarch Marking
Systems' bar code, printing and tracking ~ecI:m0l~gies
are focused in two'segments: merchandIse Identifi~a
tion, tracking and price marking systems and supphes
for retailers' and item tracking systems for a vaIlety of
logistics applications for businesses of all types. ".
Monarch Marking Systems' overall performance m
1990 was affected by the unfavorable trends· experienced by the retail industry in the United Sta~es and
Canada. Monarch Marking Systems' non-retail sector
experienced solid growth, particularly in the emerging
area of logistics systems.
Monarch Marking Systems continued its §trategy of
developing enhancements for existing products with
new products introduced in three key areas:· data col-,
lection, thermal printing and handheld systems. These
products allow Monarch Marking Systems to offer more
complete systems, permitting the company to become a
worldwide leader'in the growing logistics market, as,
well as to benefit from the expanding use of thermal
tags and l a b e l s . '
" "
In early 1990, Monarch Marking Systems introduced
a PC-based data collection system, which addresses the
logistics applications of shipping, receiving and product identification. Also, three new thermal transfer
printers were targeted to specific vendor ~pplicatio~s.
Work progressed with the U.S. Postal SefV1~e, conSIStent with its objective of haVing all U.S. mail bar coded _
by 1995. In 1990, Monarch Marking Syste~ developed and introduced PALS, the .compr~he.nslve bar .
code labeling system currently In use In five USPS SItes
around the country. PALS, which h~ the flexib~ity to
handle a wide variety of postal servIce needs" WIll be
available to the commercial mailing community in
early 1991.
.
In 1990 Monarch Marking Systems also deSIgned
and manufucturedproducts to meet requirements of
specific customers. .
"
..
Monarch Marking Systems' long-term obJeettve of
increasing global retail coverage resulte? in expansion
into India, Hungary and what was prevlous~y E~st
Gerinany. In 1990, the company also had fJIst time
sales in Yugoslavia and Czechoslovakia.
,
Monarch Marking Systems will continue to focus on
strategies that expand its markets worldwid~, applying
its item tracking know-how to both the retail and the
broader emerging non-retail marketplaces. Monarch
, Marking Systems is working with Pitney B~~es
Shipping and Weighing Systems to develop JOIDt product
000416
20
offerings for logistics and shipping needs worldwide.
Monarch Marking Systems will meet customer needs
with increasingly sophisticated systems solutions, its
"lggressive, customer-driven product devel~pme~t
~rategy and a commitment to customer satisfactiOn.
Pitney Bowes Management Services
Pitney Bowes Management Services (P~~S) pro.vides
customized contract management of cntlcal busmess
support functions relating to the preparation and
distribution of correspondence, documents and
parcels, as well as other support services. In 1990,
PBMS expanded its operations and is represented
in more than 20 cities nationwide. With increasing
numbers of businesses seeking to outsource critical
business support services, the potential market for
PBMS is growing.
For PBMS, 1990 was a year of transition a~d of the
successful integration of existing operations with those
acquired in the purchase of Pandick Technologies.
PBMS' strategy is to use technology to create competitive differentiation, enhan~ing pradu.cts ~nd services to bring customers operational efficiencies. Its
mailroom services offer the latest high volume automated mail technologies developed by Pitney Bowes
Mailing Systems. Consistent with the long-term strategy
of offering high value services with mailroom management as the lead, PBMS is actively pursuing new s~rv
=ces, many of which use the technology of other PItney
jowes' divisions.
.
In 1990, PBMS introduced the Site Support System,
a proprietary tool developed specifically for PBMS~ .
managed facilities. Site SuppOrt increases product1V1ty
of customer operations which previously used m~nual
processing techniques. It. tracks ~d analy~es .mad
trends and volumes, provides on-line veriflca~10n of
employee locations, and a method for managmg ~nd
reporting time-sensitive mail delivery.· With ~ertalfi .
clients services also include those related to lflterofflce
mail s~ch as deployment of airline tickets, stationery .
and supplies, and audio visual equipment.
.
Pitney Bowes' unmatched mailroom knowledge,
expertise and technology will facil~tate ~BMS: conti~u
ing expansion into large- and medmm-slzed mdustnal
and service companies in the 1990s.
FINANCIAL SERVICES
Pitney Bowes Financial Services (PBFS) provides
worldwide pro?uct financing to support the gl~bal .
expansion of PItney Bowes. PBPS also offers ~mancmg .
and leasing to strong credit-worthy customers m the
countries in which it operates.
In 1990, PBFS' revenue of $547.8 million accounted
~')r 17 percent of total corporate revenue. At year-end,
..-'BFS· gross finance assets were $5 billion, and included more than 435,000 accounts. PBFS'internationa.1
marketing effort is growing. In 1990, over 25 percent
of PBFS' revenue came from non-U.S. operating units.
While the domestic leasing market was estimated at $140 billion in 1990, the worldwide market was
approximately $210 billion. .
.
As a part of PBPS' internatlOnal expanSIon, opera-.
Hons in Australia and France were fur):her developed ill
1990. Also during the year, in anticipation of opportunities in a reunified Germany, Adrema Leasing
Corporation established a presence in what was formerly East Germany.
. PBFS will continue to provide support for leasable
Pitney Bowes' products around the world. In 1990,
the lease-to-sale ratio for Pitney Bowes' mailing and
copier equipment in the U.S. was 65 percent. In
Europe and Canada, the lease-to-sale ratio in mailing
products was more than 70 percent.
To drive this strategy of increasing the lease-to-sale
ratio, several programs were initiated to help expand
the number of Pitney Bowes' products placed· on
lease. Express~ Lease, with its simple documentation
.and rapid turnaround, makes leasing an attractive
option for users of Pitney Bowes' equipment such as
small scales and the Eagle" Professional Mailing
System. . Systems sales incentives and special programs
for acquiring specific combinations of Pitney Bowes'
equipment have also significantly contributed to
achieving this goal.
Colonial Pacific Leasing Corporation, which provides small- and middle-ticket leasing services to U.S.
businesses through independent lease brokers,
increased market penetration in the eastern part of the
country in line with its declared strategic intent. In the
u.K., Pitney Bowes Finance PLC leased record levels
of Pitney Bowes' equipment and continued its success .
in fmancing other products for its customers.
.
In 1990, Pitney Bowes.of Canada Leasing Division
began offering wholesale and reta~l tr~ctor/trailer
financing programs. Adrema Leasmg m Germany
expanded its automobile leasing programs., and in the
U.S., the Vendor Investment Program continues to
expand its programs with third-party equipment vendors.
As an integral part of its customer. satisfaction
.
efforts, ·PBFS qeclared 1990 to be a year of intensified
customer focus, making a series of special efforts in all
areas to be sure that both new and long-term customers are pleased with the l€vel of service.. ~his special focus is already paying off in customer satisfaction
and repeat business.
0004'1. 7
21
Management's Discussion and Analysis
Begmems
Identifiable assets by business segment and geographic
area for the years 1988 to 1990 were as follows:
Pitney Bowes manufactures and markets products, and provides services in two industry segments: business equipment and business supplies and services; and provides
financing in a third industry segment: fmandal services.
Business equipment includes: postage meters and mailing, shipping and facsimile systems, copiers and copier supplies, and voice processing systems which include dictating
systems, automatic telephone answering systems and voice
communications recorders.
Business supplies and services includes: equipment and
supplies used to encode and track price, content, item identification and other merchandise information; mailroom,
reprographics and related facilities management services;
and retail security systems.
The financial services segment includes the worldwide financing operations of the company. This segment
provides lease financing for the company's products as
well as other fmancial.services for the commercial and
industrial markets. '
Revenue and operating profit by business segment and
geographic area for th~ years 1988 to 1990 were as follows:
Revenue
1988
1990
1989
(in millions)
. Industry segments:
Business equipment:
Mailing systems
$1,695.4
$1,525.1
$1,415.2
Copying systems
302.2
273.3
2895
VOIce processing
systems
298.1
291.8
267.5
2,283.0
2,.119.1
1,956.0
364.8
547.8
301.2
455.4
253.8
365.9
Total
$3,195.6
$2,875.7
$2,575.7
Geographic areas:
United States .
Europe
Canada and other
$2,448.3
4185
328.8
$2,211.2
345.1
319.4
$2,017.9
321.9
235.9
Total
$3,195.6
$2,875.7
$2,575.7
Business supplies
and services
Financial services
Operating profit'
1988
1990
1989
(
(in millions)
Industry segments:
Business equipment
Business supplies
and services
Financial services
$ 231.0
$ 181.3
$ ,268.3
34.3
160.3
43.7
130.7
43.8
125.5
Total
$ 425.6
$ 355.7
$ 437.6
Geographic areas:
United States
Europe
Canada and other
$ 333.7
47.8
46.8
$ 262.9
43.4
51.1
$ 342.1
50.8
45.5
Total
$ 428.3
$ 357.4
$ 438.4
'm 1990 and 1989. operating prolltincludes nonrecurring charges primarily
in the business equipment segment in the United States.
22
Identifiable assets
1989
1990
1988
(in millions)
Industry segments:
Business equipment
Business'supplies
and services
Financial services
$1,743.1
$1,768.1
$1,581.1
. 243.9
3,793.8
248.4
3,334.7
120.1
2,847.7
Total
$5,780.8
$5351.2
$4,548.9
Geographic areas:
United States
Europe
Canada and other
$4,553.5
713.3
582.6
. $4,308.0
502.6
586.0
$3,645.4
429.6
Total
$5,849.4
$5,396.6
$4,588.7
513.7
Significant Transactions
In both 1990 and 1989, Pitney Bowes made Significant
organizational and strategic decisions which substantially .
impacted the results of operations and future outlook for
the company.
To enhance global competitiveness and opportunities to
aChieve strong revenue and profit growth in the 1990s, a
series of transition initiatives were undertaken by the company at the end of 1989. These initiatives were designed
to increase the efficiency and productivity of the company's
worldwide manufacturing and distnbution systems, and
provide employees with the advanced technological skills
required for the future. The company's transition program
included a worldwide workforce reduction, a change
of employee ~kill mix, the establishment of a dedicated
copier division in the United States and the consolidation of distribution centers, as well as the streamlining of administrative systems and equipment service organizations. The
cost of these initiatives amounted to $110 million and
was reflected as a one-time, pretax charge to earnings
in the fourth quarter of 1989. Benefits from this program
were realized in 1990 and are expected to continue
enhancing future operations..
In September 1990, the company changed its copier
marketing strategy and announced plans to discontinue the
remanufacture of used copier equipment. The copier organization now' concentrates on new, higher-margin copiers
consistent with its marketing strategy directed at.serving .
large corporations and multi-unit installations. As a result of
this change in strategy and the resultant discontinuance of
the equipment remanufacturing process, the company
adjusted the estimated useful life of copiers from five years
to three years and established a reserve for the disposal of
copiers which previously would have been remanufactured,
employee severance payments and facility cloSing costs. The
aggregate one-time, pretax charge against 1990 third-quarter
earnings was $86., million. As a result of these actions,
copier profitability in the fourth quarter of 1990 improved;
and it is anticipated that this trend will continue into the future.
0004.18
;F
,/'
The company has also committed to div.est itself of the
Wheeler Group Inc. ("Wheeler"), a direct mail marketer of
office supplies. The sale of Wheeler is expected to result
in a gain at closing. Wheeler has been classified in the
Consolidated Statement of Income as a discontinued opera1n; revenue and income from continuing operations
_-"elude the results of Wheeler for all periods presented.
Through the October 1989 acquisition of Pandick
Technologies, Inc. ("Pandick"), the company dramatically
expanded its presence in the facilities management marketplace and increased its commitment to this business.
Pandick, a nationwide provider of on-sire contract senrices for mailroom management and reprographics, was
integrated with the company's mailroom management
organization dUring 1990.
The company adopted, retroactively to January 1, 1989,
the liability method of accounting for income taxes prescribed by Statement of Financial Accounting Standards
No. 96, "Accounting for Income Taxes. Upon -adoption of
this standard, net income for the fIrst quarter and full year
of 1989 was increased by $66 million, or 83 cents per
share, for· the cumulative effect of the accounting change.
II
Results of Continuing Operations
Worldwide revenue increased 11 percent in 1990 and
12 percent in 1989. Income from continuing operations
before income taxes increased 26 percent in 1990, 15 percent after tax, compared to a substantial decrease in 1989
reflecting the effects of the nomecurring charges referred
",., above. Excluding the effects of the one-time charges
r the 1990 copier strategy changes and the 1989 transition initiatives, pretax earnings increased 12 percent in
1990 and ,five percent in 1989 despite the impacts of the
1990 worldwide economic slowdown.
Sales revenue increased ten percent in 1990 compared
with a seven percent increase in '1989. The 1990 increase
resulted primarily from the late 1989 Pandick acquisition
and strong mailing and shipping product-sales. In addition,
moderate price increases and favorable foreign exchange
effects had positive sales impacts. Sales in 1989 benefitted
from favorable shipping, facsimile, copier, digital voice processing and industrial marking systems equipment revenue.
While the 1989 increase also benefitted from the Pandick
and Australian acquisitions, 1988 scale chart and PROM
(memory chip) sales relating to a general U.S. postal rate
increase offset these additions to a degree.
Revenue from rentals and financing, substantially. all of
which is in the business equipment and financial services
,segments, increaseq 13 percent in 1990 and 17 percent
in 1989. Rental revenue increased due to higher numbers
of postage meters, especially higher yielding Postage By
Phone® and electronic meters, facsimile equipment and
copier products on rental. Financing revenue grew in 1990
and 1989 as a result of increases in the company's leasing
portfolios, the sale of certain fmance assets and a higher
189 interest rate environment.
Support services revenue, virtually all of which is derived
from the business'equipment segment, increased ten percent in 1990 and 15 percent in 1989 due to increased numbers of seIYice agreements in place and price increases.
The cost of sales to sales revenue ratio increased to 51.3
percent in 1990 from 51.1 percent in 1989 and 48.7 percent
in 1988 primarily due to the increasing sigiuficance of the,
company's mailroorn management business which h1dudes
most of its expenses in cost of sales. Sales margins in 1990'
were favorably affected by reduced voice processing product costs, LIFO inventory reductions and the sale of the
company's low-margin shelf label business at the beginning
of the year. The 1990 ratio also reflects unfavorable copier
and Australian business equipment cost of sales rates and
reduced mafl~ins on marking systems products due to the
overall weakness in the retail marketplace. The higher ratio
in 1989 was due, in part, to 1988's favorable margins on
scale chart and PROM revenue related to the April 1988
general U.S. postal rate increase.
The cost of rentals and financing to rentals and financing revenue ratio was 27.7 percent in 1990, 25.6 percent in
1989 and 25.3 percent in 1988. The ratio increases refl~ct
the margin impact of fmancial services asset sales and 1990
operating lease programs, which are expected to continue
in the future. Higher costs, principally depreciation, associated with increased levels of facsimile and higher-cost
electronic postage meter rental a~ets in service also
affecred these ratios, These factors were partly offset by
growth associated with the company's higher-.ma.r;gin fmancial services operations and improved 1990 fourth-quarter
copier rental margins.
Selling, service and administrative expenses as a percentage of revenue were 40.7 percent in 1990, 41.9 percent in
1989 and 43.5 percent ,in 1988. The continued improvement
in this ratio reflects the benefits of transition initiatives,·the
fourth-quarter 1990 impact of the neW copier strategy,
implementation of.cost-,effective marketing programs and
continuing cost containment programs throug1:lout the company. Although improving throughout the fuird and fourth
quarters, the expense ratio of the company's German business equipment operation was unfavorable for fiscal 1990. '
These ratio improvements also reflect corporate spending
restraint, reduced levels of incentive compensation and, in
1989, -lower profit sharing costs. .
Research and development expenses increased 25 per~
centin 1990 and ten percent in 1989. These increases reflect
continued investment ill advanced product development
focusing on electronic technology and software development as it applies to the company's businesses and markets.
Increased investment in research and development is
expected to enhance Pitney Bowes' ongoing product devel, 6pment ap.d expedite product introductions. In 1989. the
company also increased engineering resources committed
to the continued enhancement of active products.
Net interest expense was $253 million in 1990, an
increase of 11 percent, compared to $229 million in 1989
which was up 42 percent from 1988. The increases for both '
periods were p:iimarily due to higher average borrowing
levels principally related to the financial services operations:
0004.1.9
23
In 1990, the company substantially slowed its growth in
debt level and interest cost increases. Interest expense was
favorably impacted by lower 1990 interest rates as compared to increased interest rates during 1989, and higher
capitalized interest in both periods.
Industry segment operating profits reflect the factors
discussed·above and in the Financial Services discussion
below. Excluding the effects of nonrecurring charges, profit
of the business equipment segment increased 11 percent in
1990 and seven percent in 1989 while revenue increased
eight percent in both periods. Efficiencies achieved through
transition initiatives and me new copier strategy have and
should continue to favorably impact this segment. Excluding
1989 transition costs, business supplies and services segment operating profit declined 23 percent in 1990 and
increased one percent in 1989 while revenue increased 21
percent and !9 percent, respectively. These changes reflect
the company's investment and integration costs associated
with the acquisition and expansion programs for its mailroom management and reprographics .business and me.
early 1990 divestiture of Data Documents Systems, Inc.
("DDS"), a low-margin shelf label business.·Additionally,
1990· and 1988 were adversely affected by softness in retail
markets which slowed earnings of marking systems products·
in both years. Performance in the financial services segment
benefitted from continued Strong revenue growth which
was over 20 percent in both 1990 and 1989. Operating
profit increased 23 percent in 1990 compared to only four
percent in 1989. Strong growth of the company's highermargin internal portfolio, lower 1990 interest rates and 1989
rate increases were the key reasons· for these changes.
The effective tax rate was 36;9 percent in 1990, 31.0 percent in 1989 and 34.7 percent in 1988. The 1990 rate increase
reflected reduced levels of investment tax credits and losses
in subsidiaries outside the U.S., primarily in Australia and
Germany, which provided minimal tax benefit. In both 1990
and 1989, the effective tax rate was favorably.affected by
the tax benefit of nonrecurring charges incurred by a unit
subject to higher state tax rates. The improved 1989 rate
also reflected the impact of a substantial overall reduction in
tax expense with investment tax·credit levels remaining
constant as well as the inclusion of certain favorable ·prior. year tax adjustments.
Although not affecting income, deferred translation gains
in 1990 and 1988 amounted to $33 million and $4 million,
respectively; 1989 losses were $12 million. Significant factors causing the gains recorded in 1990 and 1988 were the
strengthening of the British pound, Canadian dollar and
Swiss franc. In 1989, losses resulted from the weakening of
(
the British pound.
In December 1990, Statement of Financial Accounting
Standards No. 106, "Employers' Accounting for Postretirement Benefits Other than Pensions" ("FAS 106"), was issued
addressing health care and other welfare benefitS proVided
to retirees. FAS 106 requires a change from the cash basis of
accounting to the accrual basis of apcounting for these
24
benefits and is effective for fiscal years beginning after
December 15, 1992. The accrual basis requires measure. ment of the company's obligation and accrual of that obligation over the period in which the employee provides
service to the company. FAS 106 allows for immediate'
recognition of the accumulated postretirement benefit obligation or amortization of this obligation over 20 years.
Upon adoption of this standard, the company anticipates
a significant increase in its annual postretirement benefit
expense. If the company decides to recognize its postretirement benefit obligation immediately, it anticipates recording
a Significant one-time charge to income for the cumulative
effect on prior years of not acc;:ruing such benefits. The.
company is currently studying all options available to it as
well as -potential future plan changes, and accordingly, the
amount of the obligation and impact on the company's
fmancial statements is not presently estimable.
Financial Services
The fmancial services operations provide lease f1!1ancing
for Pitney Bowes products as well as for commercial and
industrial markets in the U.S., Canada, the u.K., Gennany,
France and Australia. Condensed flnancial infonnation for
these operations is disclosed in Note 14 to the consolidated
financial statements. These operations fmanced 31 percent
of consolidated sales revenue in 1990, 28 percent in 1989 .
and 31 percent in 1988.
Total fmancial·services reveIJ,ue amounted to $548 million
in 1990, up from $455 million in 1989. Total fmancial services assets increased to $3.8 billion at year-end 1990, up 14
percent from $3.3 billion in 1989 which was up 17 percent
from $2.9 billion in 1988. To fund the increase in lease
receivables, borrowings increased to $2.7 billion in 1990
from $2.4 billion in 1989 and $2.0 billion in 1988. The
decline in debt growth reflects the sale of approximately
$310 million and $200 million of frriance assets during 1990 and 1989, respectively. In addition to $175 million of borrowings available under shelf registration statements, the .
fmancial services operations had approximately $1.1 billion
of unused lines of credit outstanding' at year-end 1990
largely supporting commercial paper borrowings.
Discontinued Operations
In addition to the planned Wheeler disposition discussed
above (see Significant Transactions), the company's former
subsidiary, Data Documents, Inc. ("DDI"), was classified as
a discontinued operation. During 1988, the company sold
all of the capital stock of DDI for approximately $93 million
in cash. The sale resulted in a gain of approximately $6 million (net of $6 million of income taxes). The results of DDI
and Wheeler have been excluded from revenue and
income from continuing operations. Condensed fmancial
infonnation for these companies is disclosed in Note 10 to
the consolidated fmancial statements.
000420
~
-
Uquldity and Capital Resources
.Capita/Investment
Working capital and the current ratio at the end of 1990
declined from year-encf 1989. The current ratio at December
31, 1990 was .62 to 1 compared to .75 to 1 at. December 31,
';189. These declines reflect the 1990 growth of the financial
..ervices lease portfolio and retirement of $75 million of 11.125%
notes due in 1992 partly offset by the sale of approximately
$310 million in net fmance asSets referenced above. These
factors added $121 million of net current fmance assets but
$547 million of short-term debt reflecting the funding of
long-term fl11ance receivables with short-term borrowings. It
has been financial services' practice to use a balanced mix
of debt maturities, variable- and ftxed-rate debt and interest
rate swaps to control its sensitivity to interest rate volatility.
The ratio of short- and long-term debt to the total of
such debt and stockholders' equity was 65.4 percent at
December 31, 1990 as compared to 66.3 percent at December
31. 1989. Continued emphasis of fee-based ftnancial services
transactions and consideration of the sale of certain financing
transactions as well as reduced growth in large-ticket, longerterm external portfolio placements are expected to continue
to slow growth in finance assets and debt levels. Additionally,
it is anticipated that proceeds from the sale of Wheeler will
be used to further reduce short-term borrowing levels.
In addition to the carry-over of $150 million from a previous shelf registration. the company fIled a $250 million shelf
registration with the Securities and Exchange Commission in
March 1990. As part of these shelf registrations, the company
established a medium-term note facility permitting issuance
....f up to $100 million in debt securities. In 1990, the com.my issued $44 million in medium-term notes under this
program at interest rates ranging from 8.16 percent to 8.72
percent with maturities between two and four years; the net
proceeds, approximately $44 million, were used to repay
corporate short-term commercial paper borrowings.
On Februaty 12, 1991. Pitney Bowes Credit Corporation
("PBCC~) issued $150 million principal amount of 8.800h
notes d.ue in 2003; this leaves PBCC with $175 million remaining on shelf registrations rued with the Securities and
Exchange Commission. AB part of these shelf registrations, .
PBCC has.a medium-term note facility permitting issuance
of up to $150 million in debt securities having maturities
ranging from nine months to 30 years.
. At year-end 1990, the company had unused lines of
credit and revolving credit facilities totaling .$1.4 billion in
the U.S. and $118 million outside the u.s. largely supporting
commercial paper borrowings. Amounts available under
credit agreements, shelf registrations 'clnd medium-term note
programs in addition to cash generated intemally are expected .
to be sufficient to provide for fmancing needs for the next
year. Additional financing will be arranged as deemed necessary. Information with respect to debt maturities is disclosed
in Note 5 to the consolidated financial statements.
Net additions to property, plant and equipment in 1990
were $133 million compared with $106 million in 1989. The
additions include normal plant and manufacturing equipment as well as a new corporate engineering and technology center in Shelton, Connecticut. completed in 1990. Net
additions to rental equipment in 1990, excluding the effect
of the copier changes, were $194 million compared with
$190 million in 1989. These additions represent the production of postage meters and the purchase of facsimile and
copier equipment for both new placements and upgrade
programs.
As prev}ol}sly reported, fmancial services has made
senior secured loans and commitments in connection with
acquisition, leveraged buyout and recapitalization fl11ancings.
At December 31, 1990, the company had a total of $79
million of such senior secured loans and comillitments
outstanding. In connection with such outstanding loans and
commitments, the company currently has $31 million of
outstanding senior secured loans with three companis:s
that have ftled under Chapter 11 of the Federal Bankruptcy
Code. The company expects full recovery of its investments
due to the senior secured nature of the loans. The company .
has not participated in unsecured or subordinated ·debt
fmancing of highly leveraged transactions.
At December 31, 1990, commitments for the acquisition
of property, plant and equipment reflected plant and manufacturing equipment improvements as well as rental equipment for new and upgrade programs.
Eftet:tS of Inflation
Inflation rates, even though moderate in recent years,
.continue to have ari effect on worldwide economies and the
way companies operate. In addition to increasing labor
costs and operating expenses, the company is also impacted
by the higher costs associated with replacement of fJXed
assets and especially rental equipment assets. In the face of
increasing costs, the company has generally been able to
maintain profit margins through productivity and efficiency
improvements. continual review ofboth manufacturing
capacity and operating expense levels and, to an extent.
price increases. The 'efficiencies resulting from the transition
initiatives, new copier strategy and continuing cost containment programs discussed above have helped combat the
negative impacts of increasing inflation rates.
Dividend Policy
It is the policy of the Pitney Bowes board of directors to'
pay a cash dividend on common stock each quarter when
feasible. In setting dividend payments, the board considers
the dividend rate in relation to the company's recent and
projected earnings and its capital investment oppottunities
and requirements. Pitney Bowes has paid a dividend each
year since 1934.
000421
25
'W
Summary of Selected Financial Data
(Dollars in
thou5and~.
Pitney.Bowes Inc.
except per share data)
Years ended December 31
Total revenue
Costs and expenses
Nonrecurring charges
1990
1989
1988
1981
1986
$3,195,550
2,781,406
86,500
$2,875,685
2,504,628
110,000
$2,575,652
2,222,694
$2,269,818
1,959,020
$1,988,710
1,Z20,367
Income from continuing operations before
income taxes
Provision for income taxes
Income from continuing operations
Discontinued operations
Cumulative effect of a change in
accounting for income taxes
Net income
Total dividends on common, preference and
, preferre<;l stock
Dividends per share of common stock
Average common and common equivalent
shares outstanding
2~8.343
327,644
120,995
261,057
80;947 .
352,958
122,560
310,798
118,383
112.103
206,649
6,646
180,110
6,609
230,398
12,960
192,415
7,033
156,240
11,684
$ 252,767
$ 243,358
$ 199,448
$ 167.924
$2.27
.09
$2.92
.16
$2.44
.09
$1.97
.15
$3.08
$2.53
$2.12
66,048
$ 213,295
Income per common and common eqUivalent share:
Continuing operations
Discontinued operations
Cumulative effect of a change in
accounting for income taxes
Net income
$2.60
.08
.83
$2.68
$3.19
"
$94,819
$1.20
$81,718
$1.04
$72,055
$.92
$59,176
$.76
$51,487
$.66
79,624,880
79,323,046
78,999,668
78,928,829
79,224,699
$6,060,545
$1,099,396
$36,560
$1,589,414
$20.13
$5,611,115
$1,369,338
$42,002
$1,428,327
$18.15
$4,788,362
$1,059,157
$42,637
$1,269,177
. $16.16
$4,018,311
$850,656
$47.219
$1,045,316
$1356
$3,253,734
$556,918
$47,200
$912,509
$11.69
Balance sheet at December 31
Total assets
Long-tenn debt
Capital lease obligations
Stockholders' equity
Book value per common share
Ratios
Profit margin-continuing operations:
Pretax earnings
After tax earnings
Return on stockholders' equity
Debt to total capital
10.3%
65%
,13.4%
65.4%
9.1%
6.3%
17.7%
66.3%
13.7%
8.9010
19.2%
63.5%
13.7%
8.5%
19.1%
63.2%
,13.5%
7.9%
18.4%
58:3%
Other
Common stockholders of record
Total employees
Postage meters in service, U.S., U.K
and Canada'
31,323
'29,942
1,386,387
31,383
31,404
1,354,501 .
34,687
29,316
24,178
28,069
21,946
27,798
1,302,879
1,237,422
1,195,421
0004.22
26
;;
,
Consolidated Statement of Income
" Pitney Bow~s Inc,
<Dollars in thousands, except per share data)
Years ended December 31
t{evenue from:
Sales
Rentals and fmancing
Support services
Total revenue
Costs and expenses:
Cost of sales
Cost of rentals and ftnancing
Selling, service and administrative
Research and development
Interest expense
Interest income
Nonrecurring charges
Total costs and expenses
Income from continuing operations before
iiJ.come taxes
Provision for income taxes
Income from continuing operations
Discontinued operations
Income before cUmulative effect of a change
in accounting for income taxes
Cumulative "effect of a change in accounting
for income taxes
Net income
Income per common and common equivalent share:
Contuming operations
Discontinued operations
Cumulative effect of a change in accounting
for income taxes
Net income
!'
1990
1989
1988
$1,539,414
1,184,105
472,031
$1,399,680
1,047,151
428,854
$1,303,840
897,646
374,166
3,195,550
2,875,685
2,575,652
790,312
634,915
227,276
1,120,163
79,493
166,142
(5,295)
86,500
715,591
268,364
1,204,592
87,285
238,375
(9,579)
110,000
2,867,906
2,614,628
2,222,694
"327,644
120,995
261,057
80,947
352,958
122,560 "
206,649
6,646
180,110
6,609
230,398
12,960
213,295
186,719
243,358
328,527
1,300,367
109,344
264,473
(11,617)
66,048
$ 213,295
$ 252,767
$ 243,358
$2.60
.08
$2.27
$2.92
,09
.16
.83
$2.68
$3.19
$3.08
See notes, "pages 31 through 38
0004'23
27
....
Consolidated Balance Sheet
Pitney !lowes Inc.
(Dollars in thousands)
December 31
Assets
Current assets:
Cash and cash equivalents
Short-term investments, at cost which approximates market
Accounts receivable, less allowances:
1990, $14,352; 1989, $13,259
1989
1990
$
79,058
862
$
60,998
79
416,688
414,180
863,750
381,354
57;389
742,397
440,208
40,720
Finance receivables, less allowances:
1990, $23,869; 1989, $21,742
Inventories
Other current assets and prepayments
Total current assets
Property, plant and equipment, net
Rental equipment and related inventories, net
Property leased under capital leases, net
Long-term frnance receivables, less allowances: ,
1990, $60,645; 1989, $56,620
1;799,101
565,150
608,441
20,231
1,698,582
509,751
'595,840 ,
24,851
2,673,134
2,464,823
158,123
236,365
150,444
'166,824
$6,060,545
$5,611,115
$ 560,697
159,955
1,865,720
302,506
$ 501,050
96,705
1,396,800
276,351
2,888,878
444,397
1,099,396
38,460
2,270,906
465,342
1,369,338
' 77,202
4,471,131
4,182,788
J36
5,163
161,669
153,356
1,307,421
36,946
05,277)
226
5,821
161,610
150,286
1,188,945
3,911
(82,472)
1,589,414
1,428,327
$6,060,545
$5,611,115
Goodwill, net of amortization:
1990, $28,964; 1989, $23,971
Other assets
Total assets
Uabilities and stockholders' equity
Current liabilities:
Accountspa~Weanda~ruedfubilities
Income taxes payable
Notes payable and current portion of long-term obligations
Advance billings
Total current liabilities
'Deferred taxes on income
Long-tenn debt
Other noncurrent liabilities
Total liabilities
Stockholders' equity:
Cumulative preferred stock, $50par value, 4% convertible
Cumulative preference stock, no par value, $2.12 convertible
Common stock, $2 par value (120,000,000 shares authorized; 80,834,478 shares issued)
Capital in excess of par value
Retained earnings '
Cumulative translation adjustments
Treasury stock, at cost (2,145,850 shares)
Total stockholders' equity
Total liabilities and stockholders' equity
See nOles, pages 31 through 38
00'0424
28
,
Consolidated Statement of Cash Flows
PItney Bowes Inc.
(DollaIS in thousands)
1990
1989
1988
$ 206,649
$ 180,110
$ 230,398
Years ended December 31
"'3sh flows from operating activities:
Income from continuing operations
Cumulative effect of a change in accounting
for income taxes
Adjustments to reconCile income from continuing
operations to net cash provided by operating activities:
Depreciation and amortization
Nonrecurring charges, net
(Decrease) increase in deferred taxes on income
Change in assets and liabilities:
Accounts receivable
Sal~s-type lease receivables
Inventories
Other current assets and prepayments
Accounts payable and accrued liabilities
Income ta."'{es payable
Advance billings
Other, net
Discontinued operations
Net cash provided by operating activities
Cash flows from investing activities:
Short-term investments
Net investment in fixed assets
Net investment iri direct-fmance lease receivables
Investment in leveraged leases
Proceeds from sale of subsidiaries
Net assets of companies acquired
Net cash used in investing activities
·Cash flows from fmancing activities:
Increase in notes payable
Proceeds from long-term obligations
Principal payments on long-term obligations
Proceeds from issuance of stock
Stock repurchases
Dividends paid
Net cash provided by financing activities
Effect of exchange rate changes on cash
Increase (decrease) in cash and cash equivalents
Cash and cash equivalents ~t beginning of year
Cash and cashequivalents at-end of year
'"
66,048
-
·220,594
6,630
'{25,875)
194,549
110,000
(98,326)
162,587
1,410
(119,070)
28,759
(14,657)
86,485
57,757
22,148.
12,215
10,655
(24,880)
(42,111)
(69,291)
(1,292)
(28,890)
61,471
14,149
(40,272)
10,478
. (16,616)
(88,143)
(7,292)
(6,683)
40,977
(24.,877)
27,492
(22,091)
751
493,700
331,743
365,482
(783)
(322,680)
(142,733)
(77,014)
14,743 .
490
(299,734)
(422,731)
(23,150)
<93,359)
14,621
(309,488)
(504,692)
(34,306)
93,463
(15,867)
(528,467)
(838,484)
(756,269)
307,021
93,728
(257,744)
19,191
(21,467)
(94,819)
256,062
494,561
(145,412)
19,078
(19,336)
(81,718)
132,940
389,251
(113,196)
19,179.
45,910
523,235
356,119
-
.
68,979
(72,055)
6,917
(638)
(2,514)
18,060
60,998
15,856
45,142
(37,182)
·82,324
$ 79,058
$ 60,998
$ 45,142
See notes. pages 311hrough.38
000425
29
....
.Consolidated Statement of Stockholders' Equity
Pitney Bowes Inc.
(Dollars in thousands)
Common
excess of
Retained
. CUmulative
fmmJlBfion
'IhlaSury
stDr:lr
Preference
~
stock
par-value
eamings adjusiments
at cost
$316
$ 9,244
$158,869
$116,416
Capital in
Preferred
Balance, January 1, 1988
Net income - 1988 .
Cash dividends:
Preferred ($2.00 per share)
Preference ($2.12 per share)
Conunon ($.92 per share)
Sales under stock purchase,
option and dividend
reinvestment plans
Conversions to cornman stock
Conversions of debt
Issuances for companies acquired
Translation adjustments
Tax credits relating to
stock options
Balance, December 31, 1988
Net income· 1989
Cash dividends:
Preferred ($2.00 per share)
Preference ($2.12 per s~re)
Common ($1.04 per share)
. Sales under stock purchase,
option and dividend
reinvestment plans
Conversions to cornmon stock
Conversions of debt
Purchase of treasury stock
Translation adjustments
Tax credits relating to
stock options
Balance, .December 31, 1989
Net income - 1990
Cash dividends:
Preferred ($2.00 per share)
Preference ($2.12 per share)
Gammon ($1.20 per share)
Sales under stock purchase,
option and dividend
reinvestment plans
Conversions to common stock·
Conversions of debt
Issuance for company acquired .
Purchase of treaswy stock
Translation adjustments
Tax credits relating to
, stock options
. Balance, December 31, 1990
See notes, pages 31 through 38
$ 846,593
$11,745
. $<97,867)
243,358
(12)
(548)
(71,495)
(32)
7
(2,803)
159
1,242
830
23
16,351
2,005
98
6,447
22,753
3,899
1,579
284
6,607
160,964 .
142,896
1,017,896
(75,114)
15,644
252,767
(11)
(477)
(81,230)
(58)
086)
384
245
17
11,978
5,749
599
75
09,336)
(11,733)
967
226
5,821
161,610
·150,286
1,188,945
(82,472)
~,911
213,295
(6)
(423)
C94,390}
(90)
(658)
30
29
16,352
3,199
1,046
(2,480)
110
(77)
2,818
9,001
(21,467).
33,035
1,763
. $136
$ 5,163
$161,669
$153,356
$1,307,421
$05,20)
$36,946
00 011 26
~..I'
30
.;;;
Bfock,
....
.
,
Notes to Consolidated Financial Statements
Pitney Bowes Inc.
(Dollars in thousands, except per share data or as otherwise indlcated)
1. Summary at significant aceaunflng policies
Consolidation. The consolidated fmancial statements include
e accounts of Pitney Bowes Inc. and all of its subsidiaries ("the
company"). All significant intercompany transactions have been
eliminated.
Cash equivalents. Cash equivalents include short-tenn, highly
liquid investments with a maturity of three months or less from
date of acquisition.
InventoryvaluatiOIL Inventories are valued at the lower of cost
or market. Cost is determined on the last-in, first-out (LIFO) basis
for most domestic inventories, and the first-in, first-out (FIFO)
basis for most foreign inventories.
Fixed assets and depredation. Property, plant and equipment
are stated at cost. Major improvements which add to productive
capacity or extend the life of an asset are capitalized while repairs
and maintenance are charged to expense as incurred. Rental
equipmept is depreciated on the straight-line method. Other
depreciable assets are depreciated using either the straight-line
method or accelerated methods, Properties leased under capital
leases are amortized on a straight-line basis over the primary
lease terms.
Rental arrangements and advance billings. The company rents
equipment to its customers. primarily pestage meters and mailing,
shipping, copier and facsimile systems under short-tenn rental
agreements, generally for periods of three months to one year.
Charges for equipment rental and maintenance contracts are billed
in advance; the related revenue is included in advance billings and
t:!ken into income as earned.
.
~cing transactions. At the time a finance transaction is consummated, the company's finance operations record the gross
receivable, unearned income and the estimllted residual value of
leased equipment Unearned income represents the excess of the
gross receivable, plus the estimated residual value over the cost of
eqUipment Or contract acquired. Unearned income is recognized
as financing income using the interest method over the tenn of the
transaction and is included in rentals and financing revenue in the
Consolidated Statement of Income. Initial direct costs iiJ.curred in
consummating a transaction are accounted for as part of t1).e
investment in a lease and amortized to income over the term of
the leaSe.
The company evaluates the collectibility of its net investment
in finance receivables based upen its loss experience and does
so through ongoing reviews of expesures to net asset impairment.
The canying value of its net investment in finance receivables is '
adjusted to the estimated collectible amount through adjustments
to the allowance for credit losses. Losses are charged against the
allowance for credit losses. The company's poliey is to discontinue
income recognition for finance receivables contractually past due
for over 120 days.
GoodwilL Goodwill represents the excess of cost over the value
of net tangible assets acquired in business combinations and is
amortized using the straight-line method over appropriate periods,
principally 40 years.
.
~.osts and expenSes. Operating expenses of field sales
Id 'service offices are included.in selling, service and administrative expenses because no meaningful allocation of such
expenses to cost of sales, rentals and financing or suppert
.services is practicable.
Retirement plans. The company has several pension plans
covering substantially all employees, including employees in
countries outside the U.S. The plans' benefits are primarily based
on employee compensation dUring the five years preceding retirement and the number of years of service. The company's funding
pelley is to contribute amounts sufficient to provide for benefits
earned to date and expected to be earned in the future.
Income taxes. Effective January 1, 1989, the company adopted
Statement of Financial Accounting Standards No. 96, "Accounting
for Income Taxes." Income tax infonnation is disclosed in Note 8.
The provision for income taxes in 1990 and 1989 is the sum of
the amounr or-income tax paid or payable for the year as determined by applying the provisions of enacted tax laws to the taxable income for that year and the net change during the year in
the company's deferred tax assets and liabilities. The provision for
income taxes prior to 1989 is based on pretax amounts reported
. in the Consolidated Statement of Income regardless of the period
when such items are reponed for tax purposes.
Deferred taxes on income result principally from expenses not
currently recognized for tax purpcses, the excess of tax over book
depreciation, deferral of lease revenue and gross profits on sales to
finance subsidiaries.
For tax purposes, income from leases is recognized under the
operating method and represents the difference between gross
rentals billed and operating expenses.
It has not been necessary to provide for income taxes on $388
million of cumulative undistributed earnings of subsidiaries outside the United States. Such earnings have been and are expected
to be reinvested in the business for an indefinite period of time'.
Determination of the liability that would result in the evellt these
earnings were remitted to the United States is not practicable. It is
estimated, however, that withholding taxes on such remittances
would approximate $20 million.
Investment tax credits recognized on transitional property have
been accounted for using the flow-through method.
Income per share. Income per share is based on the weighted
average number of common and common equivalent shares
outstanding during the year. Common equivalent shares include
preference stock, stock option and purchase plan shares and
convertible debt.
Deposits in trust. The company's customer.s electing the use of
the Pitney Bowes Postage By Phone~ meter setting system, acomputerized system developed by the company for the resetting of
postage meters via telephone, are required to make deposits with
a trustee to cover expected pestage usage. Such funds, which are
not available to the company, are transferred to the respective
postal services upon resettings of meters for which the company
receives fees. Depesits in trust are not included in the company's
Consolidated Balance Sheet
Foreign currency translation. Assets ~d liabilities of subsidiaries operating outside the U.S. have been'translated at rates in
effect at the end of the period, and revenues and expenses were .
translated at average rates dUring the period. Net deferred translation gains and losses are accumulated in stockholders' eqUity.
The company enter.s into forward foreign e....:change contracts
primarily to hedge certain fIrm foreign currency commitments for
equipment purchases. Gains and losses are deferred and recognized as part of the cost of the underlying transaction being
hedged. At December 31, 1990. the company had approximately
.
.
nn·QA?7
VU~~4
\
e
$182.0 million of fOlWard exchange con~ets outstanding, maturing through 1993, to buy or sell various currencies.
Foreign currency transactions and translation (losses) and gains
were $(915), $1,980"and $585 in 1990, 1989 and 1988, respectively.
2. Inventories
Inventories consist of the follOWing:
December 31
1989
1990
Raw ITlllterials and
work in process
Supplies and service parts
Finished productS
$112,265
102,021
167,068 .
.$109,920
100,440
229,84S
Total
$381,354
$440,208
Had all inventories valued at LIFO been stated at current costs,
inventories would have been $41.9 million and $46.0 million
higher than reported at December 31, 1990 and 1989, respectively,
Net income for 1988 was increased approximately $2.6 million due
to the partial liquidation of inventories carried at costs prevailing in
prior years; the partial liquidation of inventories in 1990 had an
insignificant impact on net income.
3. Fbced assets
December 31
Land
Buildings
Machinery and equipment
Accumulated depredation
1989
1990
$
36,473
301,334
685,712
1,023,519
(458.369)
$
34.961
292,137
582,113
909,211
(399,460)
Property, plant and
equipment, net
$ 565,150
$ 509,751
Rental equipment and
related inventories
Accumulated depreciation
$1,214,695
(606,254)
$1,095.912
(500.072)
Rental equipment and
related inventories, net
Property leased under
capimlleases
Accumulated amortization
Property leased under
capital leases, net
. $ 608,441
$
47;965
$ 595,840
$
52,815
(27,964)
$
24,851
(27,73'f)
$
20.231
4. Current liabilifles
Accounts payable and accrued liabilities and notes payable and
current portion of long-term obligations are comprised as follows:
December 31
1990
1989
Accounts payable-trade
Accrued saiaries, wages and
commissions
Accrued pension obligations '
Transition costs
Miscellaneous accounts payable
and accrued liabilities
$ 173,494
$ 125,258"
86,127
79.521
28,230
84,006
48.732
71,102
193,325
171.952
Accounts payable and accrued liabilities
$ 560,697
$ 501,050
Notes payable and overdrafts
Current pomon of long-term .debt
Current portion of capital lease
obligations
$1,535.774
327,485
$1,213,701
180,167
2,461
2.932
Notes payable and current portion
of long-term obligations
$1,865,720 ,
$1,396,800
In countries outside the U.S., banks generally lend to nonfinance subsidiaries of the company on an overdraft term-loan
basis. These overdraft arrangements and term loans, for the most
part, are extended on an uncommitted basis by banks. and do not
require compensating balances or commitment fees.
Notes payable of the company's U.S. operations and financial
services segment were 'issued as commercial paper, loans against,
bank lines of credit, or to trust departments of bapks and others at
below prevailing prime rates. Fees paid to maintain lines of credit
were $1,167, $1,080 and $1,506 in 1990, 1989 and 1988, respectively.
At December 31, 1990, notes payable and overdrafts outside
the U.S. totaled $211.0 milliO!) and U.S. notes payable totaled $1.3
billion. Unused credit facilities outside the u.s. totaled $117.6 million at December 31, 1990 of which $89.4 million were for fmance
operations. In the U:S., the company had $1.4 billion of unused
credit facilities in place at December 31, 1990 largely in support of
commercial paper borrOWings of which $1.0 billion were for the
finance operations.
"The company enters into interest rate swap and swap option
agr;:ements as a means of managing interest rate exposure. At
December 31, 1990, the company had outstanding interest rate
swap agreements with notional principal amounts of $840 million.
Under the agreements, with tenns expiring at various dates from
1991 to 2004, the company exchanges rates between fIXed-rate
debt withrat~5 ranging from 6.84% to 13.30010 and commercial
paper rates. The interest differential to be paid or received under
swap agreements is recorded on the accrual basis as aO: adjustment
to interest expense. The company has also written interest rate
swap options. Premiums received on interest rate swap' options
are recognized over the option period. At December 31, 1990, the
company had swap options outstanding on $200 million notional
principal amounts.
or
non.1"Y8
V
U
.:.1,;".
32
5. Long·tenn debt
1990
December 31
Non-Financial Services deb~
9.25% notes due 1992
6.75% notes due 1993
8.88% notes due 1993
9.00"11> sinking fund debentures
due through 1994
8.16% to 8.75% notes due 1992-1995
Other. various due dlltes (5.500/0 to 16.50%)
Financial Services debt:
Senior notes:
7.38% notes due 1991
11.13% notes due 1992
7.25% notes due 1992
8.75% notes due 1996
10.13% notes due 1997
10.65% notes due 1999
8.63% notes due 2008
9.25% notes due 2008
8.55% notes due 2009
Subordinated debt:
12.75% notes due through 1994
Other U.S. dollar notes due 1991-1992
(9.25% to 9.95%)
Canadian dollilr notes due 1991-2000
(9.57% to 13.4?%)
Geiman mark nores due 1991-1993
(5.15% to 8.95%)
British sterling notes due 1991-1998
(9.88% to 12.18%)
French franc nores due 1992-1994
(10.300,i,)
Total long-term debt
1989
$
$
99,857
3,080
94,050
11,253
208,240
4,000
5,200
100,000
9,700
50,000
15,628
184,528
100,000
75,000
100,000
100,000
100,000
100,000
150,000
100,000
75,000
100,000
75,000
100,000
100,000
100,000
100,000
150,000
2,160
2,870
2,000
6,000
121,008
196,632
16,080
27,260
20,408
52,048
-
4,500
$1,099.396
$1,369,338 .
In addition to the carry-over of $150 million from a previous shelf
. registration, the company rued a $250 million shelf registration
with the Securities and Exchange Commission in March 1990. In
April 1990, the company established a medium-term note facility
pennitting issuance of up to $100 million in debt securities from
the 5400 million available. Securities issued under this mediumterm nore facility would ha...,e maturities ranging from more than
one year ro 30 years, In the fourth quarter of 1990, the company
issued $44.1 million in medium-term notes under this program at
interest rates ranging from 8,16% to 8.72% with maturities between
two and four years.
In February 1991, Pitney Bowes Credit Corporation ("PBCC")
issued $150 million principal amount of 8.80% notes due in 2003;
this leaves PBCe with $175 million remaining on shelf registrations
filed with the Securities and E."i:change Commission. As part of
these shelf registrations, PBCC has a medium-term note facility
permitting issuance of up to $150 million in debt seCurities having
maturities ranging from nine months to 30 years.
The annual maturities of the outstanding debt during each of .
the next five years are as follows: 1991,$327,485; 1992, $236,732;
1993, $139,064; 1994, $50,655 and 1995, 58,654. Interest paid
during 1990, 1989 and 1988 was $276,718, $230,428 and $156,187,
respectively.
Under the p:1ost restrictive provision of the company's several
<"jnancing agreements, approximately $404,774 of retained earnings
at December 31, 1990 are available fur dividends.
Under terms of their seqior and subordinated loan agreements,
certain of the fmance operations are reqUired to maintain e:,amings
before taxes and interest charges at prescribed levels. With respect
to such loan agreements, the company will endeavor to have
these fmance operations ID;lintain compliance with such terms
and, under certain loan agreements, is obligated, if necessary, to
pay to these finance operations amounts sufficient to maintain a
prescribed ratio of income available for fixed charges. The company has not been required to make any such payments to maintain income available for fixed charge coverage. The company
does not guarantee payment of any of the finance operations'
obligations..
6. Capital stock and capital in
excess of par value
At December-31, 1990, 120,000,000 shares of common stock,
600,000 shares of preferred stock, and 5,000,000 shares of preference stock were authorized, and 78,688,628 shares of common
stock (net of 2,145,850 shares of treasury stock), 2,714 shares of
preferred stock and 190,691 shares of preference stock were
. issued and outstanding. The balance of unreserved and unissued
preferred stock 060,000 shares} and preference stock (4,806,387
shares) may be issued in the future by the board of directolS,
Which will determine the dividend rate, terms of redemption,
terms of convelSion (if any) and other pertinent features.
Unreserved and unissued common stock (exclusive of treasury
,Slock) at December 31, 1990 amounted to 34,678,610 shares.
An aggregate of 843,245 treasury shares were canceled upon
issuance of such amount of shares principally for the company's
stock purchase and option plans and the purchase ofVOCAM
Systems, Inc. in February 1990.
The preferred stock outstanding, which is entitled to cumulative dividends at the rate of $2 per year, is redeemable at the
option of. the company~ in whole or ill part at any time, at the
price of $50 per share, plus dividends accrued to the redemption
date. Each share of the cumulative preferred stock is convertible
into 6.06 shares of common stock, subject to adjustment in certain
events.
The $2.12 preference stock is entitled to cumulative dividends
at the rate of $2.12 per year and is'redeemable at the option of
the company at the rate of $28 per share. Each share of the $2.12
convertible preference stock is convertible into four shares of
common stock, subject to adjustment in certain events.
At December 31,1990, an aggregate of 801,250 shares of
common stock were reserved for issuance upon convelSion of the
preferred stock (16,447 shares), $2.12 preference stock (774,768
shares) and 5-1/2% convertible debt (10,035 shares), In addition,
817,930 shares of common stock were reserved for issuance under
the company's dividend reinvestment plan and 96,285 shares of
common stock were reserved for a contingent payment related to
the LPC, Inc. acquisition.
Each share of cOinmon stock outstanding has attached one
preference share purchase right. The rights, which are subject to
certain anti-dilution adjustments, become exercisable in certain circumstances, after which they will entitle the holder to purchase
11200 of a share of newly created series A junior participating preference stock. If, after the rights become exercisable, the company
is involved in a merger or certain other transactions, the holder
will be entitled to buy stock in the surviving company at a 50
percent discount.
non42·'9
V
U,_.,..
33
7. Stock purchase and option plans ..
Transaction,s under the company's stock purchase and option plans
are sUl;nmarized below:
Common stock
January 1, 1989, shares reserved
Shares offered 1989
(price approximates markc;t
value at date of gt"dPt)
Shares issued 1989
Shares canceled 1989
-,
December 31, 1989.
shares reserved
Shares offered 1990
(price approximateS .market
value at dare of grant)
Shares issued 1990'
Shares C'.mceled 1990
December 31, 1990,
shares reserved
Shares
Price per
share
1,082.431.
$ 6-$47
Income from continuing operations before income taxes and
the provision for income taxes consist of the follOWing:.
YealS ended December 31
1,051,766
556.310
(451,653)
(131,089)
.1,025,334
1989
1988
;:
Income from continuing
operations before
income taxes:
u.s.
Outside the
574,684
(514,957)
(90,392)
1990
u.s.
$227,051
100,593
$161,050
100,007
$253,379
99,579
$39·$52
$ 6-$45
Total
$327,644
$261,057
$352,958
$19~$45
Provision for income taxes:
U.S. federal:
Currently payable
Investment tax credit
Deferred
$ 43.874
(2,812)
18,821
$ 44,1113
(8,831)
(3,3Q?)
$ 24,621
59,883
31,979
63,056
5,936
12,393
10,807
10,118
9,175'
18.329
10,599
19,293
42,258
525
24.946
13,423
23,468
. 16,743
42,783
38,369
40,211
$120,995
$ 80,947
$122,560
$ 7·$52
$33-$52
$ 7·$50
$34-$52
U.S. state and local:
Currently payable
Deferred
(8,911)·
47,346
(208)
$ 7·$52
Of the common shares reserved at December 31, 1990, options
for 328,035 are exercisable. At December 31, 1990, there rema,in
1,642,616 common shares for which rights to purchase may be
granted under the stock purchase plans. In addition, rights to purchase 103,497 common shares under the stock option plans may
also be granted.
8•. nrxes on income
In the fourth quarter of 1989, the company adopted Statement of
Financial Accounting Standards No. 96, "Accounting for Income
Taxes" ("FAS 96"). The effect of applying FAS 96 on the amount of
deferred taxes reported as ofJanuary 1, 1989 has been reflected in
the Consolidated Statement of Income as a cumulative effect of a
change in accounting for income taxes. As a result of the change,
1989 quarterly earnings were restated and the cumulative effect of
the change of $66,0 million, or 83 cents per share, was reflected in
restated eamings for the fll'St quarter of 1989. The effect on the 1989
provision for income taxes due to the change was not significant.
Outside the U.S.: .
Currently payable
Defened
Total
The Tax Reform Act of 1986 rescinded the investment tax credit
effective January 1, 1986. However, certain investment tax credits
have been allowable under transitional rules.
Deferred taxes result from temporary differences in the rc:cogniUon of revenue and expenses for tax and fmancial statement
purposes. The sources of these differences and the tax effect of
each were as follows:
YealS ended December 31
1990
Deferred profit (for'tax
purposes) on sales to
finance subsidiaries
$24,579
Inventozy and equipment
(2,807)
capitalization
(2,375)
Depreciation
Pension expense
<3,809)
(2,565)
Vacation accrual
Lease revenue and
related· depreciation
15.598
Reserve for nonr:cuning charges
6,138
(3,020)
Other
Deferred tax expense
$31,739
1989
$
1988
6,261
$
0,199) .
(2,935)
(7,056)
(640)
$
533
(3,836)
13,7341,178
(7.206)
57.323
(40,640)
793
78.375
9,907
$73,264
<9,514)
A reconciliati0If of the U.S. federal statutory rate to the company's effective tax rate follows:
Percent of pretax income
U.S. federnl statutory rate
Investment tax credit
State and local income taxes
Foreign taxes in excess of
U.S, federal rate
Rf!search and development
credits and other
1990
34.00/0
(0.9)
3.7
1989
34.0%
,0.4)
2.7
1988
34.0%
2.6
1.5
1.8
(2.5)
<3.8)
(2,2.)
Effective income tax rate
36.9%
31.ffiV
34.7%
(2..5)
3.6
Income taxes paid during 1990, 1989 and 1988 were $80,449, .
$60,269 and $77,773, resPectively.
000 4: :3 0
9. Retirement plans
Total pension expense amounted to $27.4 million in 1990, $27.8
milllon in 1989 and $23.1 million in 1988. Net pension expense for
1990, 1989 and 1988 included the following components:
The funded status at December 31, 1990 and 1989 for the
cornpll-ny's plans was:
United States
Funded status:
Foreign
1990
1989
1990
$362,653
$295,594
$ 89,491
ACQlmulaled benefit obligations
$399,240
$333,462
$ 89,480
Projected benefit obligations
$540,781
$484,841
$115,570
Actuarial present value of:
Vesred benefits
Plan assets at fair value, primarily stocks and ·bonds. adjusted by:
Unrecognized net loss (gain)
.
Unrecognized net asset
UnamoItized prior service costs from plan amendments
Net pension liability
1989
$
75,989
_S 76,353
.$
99,361 .
441,341
"46,778
(33,298)
19,941
476,632
(16,908)
(36,635)
21,B73
124,054
5,494
(32,709)
10,174
125,792
(9,349)
(31,041) .
9,464
474,762
444,962
107,013
94.866
$ 66,019
$ 39,879
.$ B,557
S 4,495
"lans' assumptions":
Discount rate
Rate of increase in future compensation levels
Expected long-term rate of return on plan assets
8.75%
6.25%
9.500/0
8.75%
6.25%
9.50%
7.00/0-11.0%
4.0%-9.00k
850/0-11.00/0
7.00Al-9.00A
4.00Al-75%
8.5%-9.00h
'Pension costs an: dell:nnined u~ing assumptions as of the beginning of the year while the funded statiJ$' of the plans is determined using assumptions as of the end of the year.
. The company also provides certain J.1ealth care and life insurance benefits for retired employees. Substantially aU of the company's employees may become eligible for those benefits if they
reach nonnal retirement age while working for the company. The·
cost of such benefits is expensed as claims are paid and for 1990, .
1989 and 1988 totaled $9,712, $6,830 and $5,497,.respectively.
In December 1990, Statement of Financial Accounting
Startdards No. 106, "Employers' Accounting For PostretirelIlent
Benefits Other Than Pensions" ("PAS 106"), was issued addresSing.
health care and other welfare benefits proVided to retirees. PAS
106 requires a change from the cash basis of accounting to the
accrual basis of accounting for these benefits and is effective for
fiscal years beginning after December 15, 1992. The accrual basis
requires measurement of the company's obligation and accrual of
that obligation over the period in which the employee provides
service to the company. FAS 106 allows for immediate recognition
of the accumulated postretirement benefit obligation or amortization ofthe obligation over 20 years. Upon adoption of this standard, the company anticipates a significant increase in its annual
postretirement benefit expense. If the company decides to recognize its postretirement benefit obligation'immediately, it anticipates
recording a significant one-time chaIge to income for the cumulative effect on prior years of not accruing such benefits. The company is currently studying all options available to it as well as
potential future plan changes, and accordingly, the amount of the
obligation and impact on the company's financial statements is not
presently estimable. .
00'0431
35
10. AcquIsitions and discontinued operations
12. Commitments ,and contingencies
In October 1989, the company acquired all of the outstanding
stock of Pandick Technologies, Inc. ("Pandick") for approximately
$95 million in cash. Pandick, a nationwide provider of on-site contract services for reprographics and mailroom management, had
revenue of approximately $100 million for its fiscal year ended
August 31, 1989. The transaction was accounted for by the purchase method and its pro forma effect on results was immatedal.
In the fourth quarter of 1989, the company announced its
intent to seek a buyer for its \Vheeler Group Inc. ("Wheeler")
subsidiary. The sale of Wheeler is expected to result in a gain at
closing. Wheeler has been classified in the Consolidated Statement
ofIncome as a discontinued operation; revenue and income have
been excluded from continuing operations.
Summary results of Wheeler operations prior to its sale, which
have been classified separately, were as follows:
At December 31, 1990, the company's fmance subsidiafies had
unfunded commitments of $49.1 million to extend credit to customers. Since many of the commitments are expected to expire
without being drawn upOn, the total commitment amount does
not necessarily represent furore liquidity requirements. The company evaluates each customer's credit woIthiness on a case-bycase basis. The amount and type of collateral obrained, If deemed
necessary by the company, upon extension of credit is based on
management's credit as.sessment of the customer. Fees received
under the agreements are recognizeli over the commitment period.
The company is a defendant in a number of lawsuits, none of
which will, in the opinion qf management, have a materi<J,l adverse
'effect on the company's fmancial position or results of operations.
Years ended December 31
1990
1989
,1988
Revenue
$71,434
' $74.018
$74,231
Income before income taxes
Provision for income llIxes
$11,008
4,362
$10.915
4,306
$11,244
4,599
Nerincome
S 6,646
$
6.609
$ 6,645
During the first quarter of 1988, the company sold all of the
C'dpital srock of its Data Documents, Inc: subsidiary for approximately $93 million in cash. The sale resulted In a gain of $6.2
million (net of $6.3 million of income taxes). First quarter 1988
operations,.prior to its sale, include revenue of $15.3 million and
net income of $.1 million.
11. Nonrecurring charges
In December 1989, the company announced a series oftransition
initiatives designed to improve the company's competitiveness,
enhance business focus and allow for the transition to a new generation of advanced systems products. In support of these initiatives, the company recorded ;J.' one-time, pretax charge of $110
million against fourth-quarter 1989 earnings. The three-year transition program includes a reduction in the company's worldwide
workforce approximating l,~OO positiOns, a change of employee
skill mix, a reduction in the ~umber of product distribution centers
and a streamlining of administrative systems and equipment service
organizations. The company also established a dedicated U.S.
copier division responsible for sourcing, selling; marketing, servicing
and supporting the company's copier products.
.In September 1990, the company changed its copier marketing
strategy and announced plans to discontinue the remanufacture of
used copier equipment. The copier organization now concentrates
on new, higher-margin copiers consistent with its marketing strategy directed at serving large corporations and multi-unit installations. As a result of this change in strategy and the resultant discontinuance of the equipment remanufacturing process, the company
adjusted the estimated useful life of copiers from five years to three
years and established a reserve for the disposal of copiers which
previously would have been remanufactured, employee severance
payments and facility closing costs. The aggregate one-time, pretax
charge against .1990 thlrd-quarter earnings was $86.5 million.
13. Leases
In addition to factory and off'ice facilities owned, the company
leases similar properties, as well as sales and service offices,
equipment and other properties. generally under long-term lease
agreements extending from three to ?5 years. Certain of these
leases have been capitalized at the present value of the net,lease
payments at inception. Amounts included under liabilities represent the present value of remaining lease payments.
Future minimum lease payments under both capital and operating leases as of December 31, 1990 are as follows:'
Years ending December 31
1991
1992
'1993
1994
1995
Later years
, Total minimum lease payments
Less amount representing interest
Present value of net minimum
'lease payments
Capital
leases
Operating
leases
$ 7,354
7,234
6,549
6,202
5,783
'44,741'
$ 74.174
55.872
38.912
28,822
19,455
88,563
77,869
$305,798
(38.848)
$ 39,021
Rental expense ~as $10l,Oi7, $73,282 and $59,389 in 1990,
1989 and 1988, respectively.
14. Finanr:1al services
Years ending December 31
The company bas several consolidated fmance operations which
are engaged in lease fmancing of the company's products as well
as other commercial and industrial transactions in the U.S.,
Canada, me U.K., Germany, France and Australia. Condensed
'mncial'data for the consolidated fInance operations follows:
Condensed summary of operatiOns
Years ended December 31
1990
1989
1988
$547,814
$455,369
$365,896
Costs and expenses
Interest, net
159,839
227,636
117,626
207,107
%,469
143,937
Total expenses
387,475
324,733
240,406
Income before income taxes
160,339
Provision for income taxes
53,837
Income before cumulative effect
of a change in accounting
for income taxes
106,502
Cumulative effect of a change
in accounting for income taxes '
130,636
35,265
125,490
38,722
95,371
86,768
Revenue
Net income
Condensed balance sheet at December 31
Cash: and cash equivalents
FJrul[\ce receivables, net
Other current assets and
prepayments
Total current assets
, 'lng-term finance receivables, net
.her asseis
Total assets
Accounts p'dyahle and
other current liabillties
Notes payable and current portion
of loqg-term obligations
$
$106,138
$ 86,768
1990
1989
12,049
'863.750
$
19,345
908.475
767,184
2,673,134,
228,874
2.464,823
112,759
$3,810,483
$3,344,766
$ 311,414
$
Total current liabilities
2,017,336
1,338,512
Deferred taxes on income
225,893
984,315
278,167
1,245,066
3,227,544 '
2,861,745
Equity
Total liabilities and equi~
Total
$4,608,121
$2,690,237
29,T/8
, 6,644
756,443
1990
1989
Gross finance receivables
Residual valuation
Initial direct cost deferred
Allowance for credit losses
Unearned income
$
4,608,121
393,379
42,592
(84,514)
(1,422,694)
$ 4,250,605
344,892
31,428
(78,362)
(1,341,343)
Net finance receivables
$ 3.536,884
$_3;207,220
The company has sold net finance receivables with varying
amounts of recourse in privately-placed transactions with thirdparty investors. Aggregate exposure relative to the uncollected
principal balance of the receivables sold and residual guarantee
contracts totaled $426.1 million. These contracts are supported by
. me underlying equipment value and credit worthiness of customers.
Adequate provisions have been made for receivables which may
be uncollectible.'
The company has invested in certain real esrate and aircraft
leveraged lease transactions and, in 1990, various types of equipment under operating leases. The net investment in leveraged
and operating leases at December 31,1990 and 1989 was not
.
significant.
16. Business segment infannation
1,159,183
Totalliabililies
$1,705,922
172,551
18,899
179,329
1,705,922
, Long-term debt
$1,238,569
942,404
668,100
368,542
197,223
1,193,283
December3i
5,442
742,397
32,676
1991
1992
1993
1994
1995
Thereafter
Finance operations' net purchases of Pitney Bowes equipment
amounted to $4805 million, $391.7 million and $4025 million in
1990, 1989 and 1988, respectively. The components of net fmance
receivables were as follows:
10,767
$106,502
Gross finance ' Notes payable and
receivables subordinllted debt
582,939
483,021
$3,810,483
$3,344,766
Finance receivables are generally due ,in monthly, quarterly or
semi-anpual ins~ents over periods ranging from three to seven
years. In addition, 22 percent of the company's net finance receivables represent secured corrunercial and private jet aircraft: transactions with lease terms ranging from five to 24 years. Marurities of
gross finance receivables and notes payable for the fmance operations are as follows:
I
For a description of the companY's segments and financial
information relating to revenue, operating profit and identifIable
assets by business segment for the years 1990, 1989 and 1988, see
Segments on page 22. That information is incorporated herein by
reference. The information set forth below should be read in conjunction with such information. Operating profit ,of each segment
is determined by deducting from ,revenue the rdated costs and
operatiI1g expenses directly attributable to the segment. Segment
operating profit excludes general corporate expenses, which
amounted to $72,700 in 1990. $72,939 in 1989 and $67,769 in
1988, income taxes and net interest other than that related to the
financial services segment. With respect to geographic areas, operating profit is'shown before elimination of changes in intercompany profit levels which increased such profits by $2,745 in 1990.
$1,746 in 1989 and $733 in 1988. Additional segment information,
is as follows:
000433
37
~
·Ye-.lrs ended December 31
Depreciation and
amortization:
Business equipment
Business ~upplies
and ~ervices
Financial .services
Toral
Net additions to property,
pl:mt and equipment
and rental equipment
and related inventories:
Business equipment
Business supplies
and services
Financial services
Total
1990
1988
1989
1989
$193,310
$177,309
$i47,663
10,786
10,080
7,620
3,520
6,945
2,269
$214,176
$188,449
$156,877
Net income
$202,101
$264,111
$301,601
10,220
55,328
16,214
4,141
9,380
4,547
$267,649
$284,466
$315,528
Identifiable assets are those used in the company's operations
in each segment and exclude cash and cash equivalents .and short~
term invesunents. Identifiable assets of geographic areas include
intercompany profits on inventory and rental equipment transferred between segments and intercompany accounts. A reconciliation of identifiable assets consolidated assets is as follows:
to
1990
December 31
1989
Identifiable assets by geographic aIe'J.
Inter-area profits
Intercompany accounts
$5,849,386
(15,825)
(52,756)
$5,396,592
"(12,762)
(32,602)
Identifiable assets by industry segment
Cash and Cllsh equivalents and
short-term investments
General corporate assets
Discontinued operations
5,780,805
5,351,22&
79,920
139,860
59,960
61,077
133,661
65,149
$6,060,545
$5;611,115
Consolidated assets
16. Quarterly financial data (unaudited}
Sll1llIllilrized quarter!y fmanda! data (in millions of dollars, except
per share data) for 1990 and 1989 follows:
Three Months Ended
1990
Total revenue
Cost of sales and rentals
and fmancing
Nonrecurring charge
Income from continuing
operations
Discontinued operations
Net income
Income per common and
common equivalent share:
Continuing operations
Discontinued operations
Net income
Total revenue
Cost of sales and rentals
and financing
Nonrecuning cliarge
Income from continuing
operations
Discontinued operations
Cumulative effect of a change
in accounting for
income taxes
March 31
June 30
sept..30
Dec, 31
$755.7
$774.2
$'799.7
$866.0
$263.2
$
$267.4
$
$288.1
$ 86.5
$300.1
S
$ 59.7
$ 60.4
$ 10.4
1.4
$ 76.1
5.3
$ 59.7
$ 60.4
$11.8 .
$ 81.4
$ .75
$ .76
$ .13
.02
$ .95
.07
$ .15
S 1.02
$ .75
$
.76
Income per common and
comInon eqUivalent share:
Continuing operntioll5
Discominued operntiOll5
Cumulative effect of a
change in accounting
for income taxes
Net income
March 31
Three Months Ended
Sept. 30
June 30
Dec. 31
$658.2
$693.6
$711.9
$812.0
$217.4
$
$230.0
$
$237.5
$
$299.1
$110,0
$ 53.4
.1
$ 62.3
(5)
$ 59.4
2.6
$ S.O
$119.5
$ 61.8
$ 62.0
S 9.5
$ .68
$ .78
$ .75
$ ,06
.03
.06
.78
$ .12
4.5
66.0
.83
$ 1.51
$
.78
$
Report of Independent Accountants
Price Waterhouse
•
To the Stockholders and Board of Direcrors of Pitney Bowes Inc.:
In our opinion, the accompanying consolidlited balance sheet and
the related consolidated statements'of income, of stockholders'
equity and of cash flows present fairly, in all material respects, .
the fmancial position of Pitney Bowes Inc. and its subsidiaries at
December 31, 1990 and 1989, and the results of their operations
and their cash flows for each of the three years in the period
ended December 31,1990, in conformity with generally accepted
accounting principles. These financial statements are the responsibility of the company's management; our responsibility is to
express an opinion on these fmancial statements based on our
audits. We conducted our audits of these statements in accordance
with generally accepted auditing standards which require that we
plaIi. and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement.
An audit includes examirliJ.1g, on a test basis, evidence supporting
the amounts and disclosures in the fmancia[ statements, assessing
the accounting principles used and significant estimates made by
management, and evaluating the overall fmancial statement presentation, We believe that our audits provide a reasonable basis
for the opinion expressed above.
.As discussed in Note 8 to the consolidated fInancial statements,
the company elected to adopt a new accounting standaJd for
income taxes in 1989.
Stamford, Connecticut
February 4, 1991
000434,
38
Directors and Officers'
1U "ecfors
CUlin G. Ca!11pbell
President
Rockefeller Brothers Fund
Donald W. Davis
Chairman, Executive Committee
.The Stanley Works
tool and hardware manufacturer
John C. Emery, Jr.
Former Chilirman, President and
Chief Executive Officer
Emery Air Freight Corporation
George B. Harvey
Chairman, President and
Chief Executive Officer
Pitney Bowes Inc.
Arthur R. Taylor
.
Dean of the Faculty of Business,
Fordham, University, and
Chairman
Arthur Taylor & Co.
investmentfirm
Julia M. Walsh
Managing Director
Tucker Anthony, Inc,
. investmentfirm
Corporate officers
George B. Harvey
Chairman, President and
Chief Executive Officer
Carmine F. Adimando
Vice President-Finance and
Administration, and Treasurer
Charles E. Hugel
.'jor to the Chief
l:.n..~\.':utive Officer and
Marc C. Breslawsky
Former Chairman
President
.
Asea, Brown, Boveri Inc.
Pitney
Bowes
Office
Systems
principalp1'Oducts arepowergeneration,
and process equipment and systems
JohnJ Carming
President
David T. Kimball
Pitney Bowes Financial Services
Retired Chairman and
Chief Executive Officer
General Signal Corporation
manufacturer ofinstrumentation
and control systems and industrial
equipment
Phyllis Shapiro Sewell
Retired Senior Vice President
. Federated Department Stores, Inc.
retailer.
Michael J. Critelli
Vice President, Secretary and
General Counsel, and
Chief Personnel Officer
John T. Herbert
Vice President-Facilities
. and Operations Services
Hiro R. Hiranandani'
President
Pitney Bowes Mailing Systems
Paul Reece
Vice President-Technical Systems and
Advanced Products
. Douglas A. Riggs
Vice President-Corporate Planning,
Communications and
External Affairs
Carole F. St. Mark
President
Pitney Bowes Logistics Systems and
Business Services
Board changes·
Denis F. Mullane, a board member
since 1982, and Eleanor HoImes
Norton, a board member since 1985,
resigned from the Pitriey Bowes
board of directors during the year.
The Pitney Bowes board of
directors wishes to thank Mr.
Mullane and Mrs, Norton for the
guidance and excellent advice they
prOVided to the company.
Steven]. Green
Vice President-Controller
000435
39
Stockholder Information
~
World headquarters
Stockholder inquiries
Stock information
Pitney Bowes Inc.
Stamford, CT 06926-0700
(203) 356-5000
Comrtlunications by common,
preference and preferred
stockholders concerning stock
certificates, dividends or address
changes should be sent to:
Dividends per common share
'1990
Quarter
First
$ .30
Second
.30
Third
.30
Fourth
.30
$1.20
Total
Annual meeting
Stockholders are cordially,invited
to attend the 1991 Annual
Meeting at 10 a.m., Monday,
'May 13, 1991, at Pitney Bowes
World Headquarters in Stamford,
Connecticut. A notice of the
meeting, proxy statement and
proxy will be mailed to each
. stockholder under separate cover.,
10·K report
The Form 10-K report, to be filed
by Pitney Bowes with the Securities
and Exchange Commission, will
. provide certain additional
information. Stockholders may·
obtain copies of this report without
charge by writing to:
Pitney Bowes Inc.
Investor Relations (61-40)
World Headq1larters
Stamford, CT 06926-0700
Trademarks
Eagle, Letter-Perfect, PostEdge,
Postage By Phone$, STAR and Total
Package~ are trademarks of Pitney,
Bowes Inc., and Customer
Satisfaction Guarantee is a service
mark of Pitney Bowes Inc. Digital,
Express, ExpressTalk, InfoTalk,
and StraightTalk are trademarks
of Dictaphone Corporation.
Express isa ,trademark of Pitney
Bowes Credit Corporation.
40
Manufacturers Hanover
Trust Company
Shareholder Relations Dept.
P.G.Box 24935
Church Street Station
New York, NY 10242-4935
Stockholders may call
Manufacturers Hanover Trust
Company at:
(212) '613-7147 or
Pitney Bowes Stockholder
Services at:
(203) 351-6088
Investor inquiries
All investor inquiries about Pitney
Bowes should be addressed to:
Pitney Bowes Inc.
InvestorRelations (61-40)
World Headquarters
Stamford, CT 06926-0700
, Transfer agent, registrar,·
dividend reinvestment
agent and successor
rigl1ts agent
Common, preference and
pre(erred stock:
Manufacturers Hanover
Trust Company
Equity Services
450 West 33rd Street,
15th floor
New York, NY 10001-2697
1989
. $ .26"
.26
.26
.26
$1.04
Quarterly'price ranges of
common stock
Quarter
First
Second
Third
Fourth
High
483/-8'
531/2
501/4
411/4
Quarter
First
Second
Third
Fourth
High
481/8
485/8
543/4
527/8
1990
Low
401/4
451/2
27
285/8
1989
Low
407/8
411/2
44 3/8 . ,
451/4
Stock exchanges
Pitney Bowes common stock is traded
under the symbol IIPBI. IJ It is listed on
the New York Stock Exchange and
. traded on the New York, Midwest,
Philadelphia and Boston exchanges.
.
,
Comments
Comments' concerning the Annual
Report should be addressed to:
Pitney Bowes Inc. .
Director, Coiporate Information (63~09)
World Headquarters
Stamford, CT 06926-0700
00043"6
.
Design:
Major
Photography:
Printing:
Benes Communications, Inc.
Scott Goodwin
Acme Printing Company, Inc.
Printed in the U.S.A.
© 1991 Pitney Bowes Inc.
00043·.
) - .7
...
,
•
Pitney Bowes
.".....
,
'-
0004~18
-
,
PITNEY BOWES ANNUAL REPORT 1990
Pitney Bowes' customers
are the keystone of its
bu.~iness,
and customer,
sa,tisfaction is the .
mea.sure ofits success.
Pitney Bowes' relationships with customers 'will
be marked by the highest
levels of trust, ethical
beha-vior, communication
and responsiveness
to their needs.
Pitney Bowes' products
and services will meet
superior levels of
quality, as defined by
customer standards
cmd expectations.
000439':
. FINANCIAL HIGHLIGHTS
(Dolla.rs in thousa.nds. except per share data)
1990
1989
For the year
$3,195,550
Revenue
$206;649
Income from continuing operations
$2.60
Per share income from continuing operations
$94,819
Total dividends
.. $1.20
Dividends per conunon share
$2,875,685
. $180;110
$2.27
$81,718
At year-end
Total assets
Stockholders' equity
Debt to total capital
Return on stockholders' equity
Book value per common share
Average common and common
equivalent shares outstanding
Common stockholders of record
Employees
$6,060,545
$1,589AI4
65.4%
13.4%
$20.13
79,624,880
31,323
29,942
$1.04
$5,611,115
$1,428,327
66.3%
17.7%
$18.15
Change
11%
15
15
16
15
8%
11
11
79,323,046
31,383
·31,404
(5)
Pitney Bowes is a $3.2 billion
multinational Inanufacturing
and marketing company which
provides n1ailmg, shipping,
copying, dictating and facsimile
systems; item identification and
.tracking systems and supplies;
mailroom, reprographics and
related management services;
and product financing.
CONTENTS
COVER·
The theme of this year's Annual Report is customer satisfaction. One such satisfied customer,
Fran Matera, general manager, Office Services
.. & Purchasin.'j, Perga~on Press, a Maxwell
Group Company, is shown on the cover.
Company Description
Letter to Stockholders
Customer Satisfaction
Year in Review
Management's Discussion
Financial Statements and Notes
Directors and Officers
. Stockholder Information
000440
1
2
4
18
22
26
39
40
TABLE OF CONTENTS
TAB
Proposal Summary
*
Inmate Monitoring/Recording _Proposal C
Reply Sheets to Appendix C
'1
Training Certificates
2
References
3
Annual Report for Vendor
4Dictaphone Recording & Monitoring
5
Brochures
6
Dictaphone Call Watch Brochures
000442
Recording and Monitoring Summary
U S WEST Communications is the preeminent provider of Inmate
Telephone Service. To retain this distinction we have become
customer focused in the area inmate equipment provision ing.
1he size of our company allows us to obtain the requested
recording/monitoring and computer assisted inmate telephone
features from a variety of suppliers.
In response ·to this R.F.P. U S WEST has chosen Dictaphone for.
recording and monitoring equipment including their Call Watch
. system. All requested computer assisted inmate services (blocking
timing, etc.) will be obtained from industry leaders upon joint
consultation with DOC .staff.
U S WEST will accomplish the objective of providing the very best
inmate service available·· for the State of Washington Department' Of
Corrections through .utilization of our telecommunication knowledge
an'd existing equipment coupled' 'with procurement of additional
inmate serVices from industry leaders.
l1 43
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v
,,,J .J ""I _.
llj.-wEST~
.COMMUNICATIONS
:1
.
@
INMATE COMMUNICATIONS
PHONE MONITORING/RECO.RDING
PROPOSAL
NO. CRFP2562
FOR THE
STATE OF WASHINGTON
DEPARTMENT OF CORRECTIONS
000444 .
Reply Sheet To Appendix C
Each statement the company can comply with must be initialed by
the company representative authorized to negotiate this contract.
For other responses requested, the answer must be given and
initialed. If the company cannot comply -with a statement, an
"Exception" must be noted. For each statement requiring additional
information. a separate sheet must be provided and identified by the
section, sub-section "and number assigned.
Can Comply
1.01
01&1-
1.03
r;1!2I
rim
1.04
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1.05
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1.02
1.06
1.07
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1.08
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1.09
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1.10
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1.11
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1.12
1.14
Cannot Comply
pI/(IY"
,~
000445
2.00 Central Control CRT Module
Can ·Comply
2.01
oIcfI
2.02
,0(&
2.03
.DaY
2.04
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2.05
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2.06
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2.07
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2.08
2~09
2.10
2.11
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2.14
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2.16
fill'
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Cannot Comply
;;
2.17
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2.18
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2.19
old
2.20
2.21
2.22
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2.24
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2.25
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000447
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Electronics/Audio ..
3.00
Can Comply.
Cannot Comply
CIf1/
3.01
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3.02
3.03
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3.04
. 3.05
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3.09
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3.11
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3.12
3.13
000448
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4.0 Tape Transport Modules
Can Comply
4.02
QI4l/
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4.03
c;xfl!.
4.01
4.05
cf1lII
6i/(
4.06
cItJI
4.07
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4.08
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*
#Dlctatpe
4.04
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Cannot Comply
or approved equal must be used.
000449
.;'
4.09
cA
4.10
p£)t
4.11
cfQI
4.12
.oR£
4.13
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4.14
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*
#Dictatpe" or approved equal must be used.
4.15
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4.16
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4.17
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. 4.18
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4.19 .
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4.20
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4.21
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4.23
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4.26
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4.30
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4.27
4.31
4.32
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4.34
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4;35
4.36
4.37
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4.38
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4.39
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4.40
4.41
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000451'
Electrical
Can Comply
Cannot Comply
5.01
5.02
5.03
5.04
5.05
5.06
5.07
000452,
6.00
Physical
Can Comply
6.02
. Cannot Comply
.0&1
6.03
6.04
6.05
000453
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..
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7.00
Environmental. Specifications
Can Comply
7.01
Cannot Comply
"cQl
7.02
7.03
7.04
n"'O"4"-e::;.r
dU
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8.0 Optional Items
Can Comply
8.01
...f:l41 "
8.04
QI!f/
8.05
,o/J[
8.08
.
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. 8.03
8.07
.
rIfIf "
8.02
8.06 "
Cannot Comply
~g
"0I1il
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00045'~
·9.0
Portable
Reproducers/Transcribers
Can Comply
9.01
9.02 .
o!IJl/ .
oI!fI
cAt
•
9.03
9.04-
I
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9.05
ell!
9.0·6
cUI
9.07
oft{l
9.08
9.09
9.10
Cannot Comply
(iG.
yI{/I
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./
9.11
Q/I!I
9.12
Q/!{l
9.13
fyLf(
9.14
oBI
000456
.. 10.0 Supplies and Accessories
Can Comply
10.02
QI4f
QIJf
10.03
.Q!lPI
10.01
10.04
10.05
10.06
. Cannot Comply
cI41I
01/11
WIffI
* Please Note Different Numbering System!
1.1
.cII/l
1.2
cIffI·
1.3
.qIIf/
1.4
rIfi£'
1.5
.S@?
1.6
oi£
000457.
~.
2.1 Down Loading (SMDR) Call Records
Can Comply
Cannot Comply
000458
3.0 Storage of Call Records (SMDR DATA)
Can Comply
Cannot Comply
OOG45~J
4.0 Archiving of Call Records (SMDR Data) .
Can Comply
Cannot Comply
4.1
4.2
4.3
4.4
0004'60
- --
~---
------
-- -----------_._-_ ..
_ .. __ .. _----
._-_. __ .. _--
---_._---_ .. _--------
--
~_
..
- -_ -
_._-_._-
..
. 5.0 Search and Retrieval of Call Records (SMDR Data)
Can Comply
1.
2.
3.
4.
5.
6.
7.
5.1
.CI4'f
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QI&Y
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. 6.1
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6.2
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6.3
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Cannot Comply
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000462
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000463
